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Vouchers and caseworkers in training programs for the unemployed

Author

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  • Ulf Rinne
  • Arne Uhlendorff
  • Zhong Zhao

Abstract

This paper studies the role of vouchers and caseworkers in training programs for the unemployed. We explore the unique features of the Hartz reform in Germany which simultaneously introduced training vouchers and imposed more selective criteria on participants. This allows us to go beyond the standard approach when we estimate the treatment effects for the most important type of training. Next to assessing the overall impact of the reform on the training’s effectiveness, we isolate the impact induced by changes in the composition of program participants (selection effect) from the impact based on the introduction of vouchers and related institutional changes (institutional effect). Our results show a small positive overall impact of the reform. The decomposition suggests that the selection effect is, if at all, slightly negative, and that the introduction of the voucher and related institutional changes increased both employment and earnings of participants. It furthermore appears that our findings are driven by skilled participants. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Ulf Rinne & Arne Uhlendorff & Zhong Zhao, 2013. "Vouchers and caseworkers in training programs for the unemployed," Empirical Economics, Springer, vol. 45(3), pages 1089-1127, December.
    • Handle: RePEc:spr:empeco:v:45:y:2013:i:3:p:1089-1127
    DOI: 10.1007/s00181-012-0662-5
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    Cited by:

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    3. Annabelle Doerr & Bernd Fitzenberger & Thomas Kruppe & Marie Paul & Anthony Strittmatter, 2017. "Employment and Earnings Effects of Awarding Training Vouchers in Germany," ILR Review, Cornell University, ILR School, vol. 70(3), pages 767-812, May.
    4. Martin Huber & Michael Lechner & Anthony Strittmatter, 2018. "Direct and indirect effects of training vouchers for the unemployed," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 181(2), pages 441-463, February.
    5. Patrick Arni & Marco Caliendo & Steffen Künn & Klaus Zimmermann, 2014. "The IZA evaluation dataset survey: a scientific use file," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-20, December.
    6. Maurizio Bussolo & Johannes Koettl & Emily Sinnott, 2015. "Golden Aging," World Bank Publications - Books, The World Bank Group, number 22018.
    7. David S. Kaplan & Rafael Novella & Graciana Rucci & Claudia Vazquez, 2015. "Training Vouchers and Labor Market Outcomes in Chile," IDB Publications (Working Papers) 88674, Inter-American Development Bank.
    8. Doerr Annabelle & Strittmatter Anthony, 2021. "Identifying Causal Channels of Policy Reforms with Multiple Treatments and Different Types of Selection," Journal of Econometric Methods, De Gruyter, vol. 10(1), pages 67-88, January.
    9. Barbara Hofmann & Michaela Kreyenfeld & Arne Uhlendorff, 2017. "Job Displacement and First Birth Over the Business Cycle," Demography, Springer;Population Association of America (PAA), vol. 54(3), pages 933-959, June.
    10. Annabelle Doerr & Thomas Kruppe, 2015. "Training vouchers, local employment agencies, and policy styles [Bildungsgutscheine, regionale Arbeitsagenturen und Politikstile]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 48(1), pages 41-56, March.
    11. Doerr, Annabelle & Strittmatter, Anthony, 2014. "Assignment Mechanisms, Selection Criteria, and the Effectiveness of Training Programs," Economics Working Paper Series 1421, University of St. Gallen, School of Economics and Political Science, revised May 2017.
    12. Caliendo, Marco, 2009. "Income Support Systems, Labor Market Policies and Labor Supply: The German Experience," IZA Discussion Papers 4665, Institute of Labor Economics (IZA).
    13. Karol Madoń & Iga Magda & Marta Palczyńska & Mateusz Smoter, 2024. "What Works for Whom? Youth Labour Market Policy in Poland," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 1-34.
    14. Paul, Marie & Dörr, Annabelle & Fitzenberger, Bernd & Kruppe, Thomas & Strittmatter, Anthony, 2013. "The Award of a Training Voucher and Labor Market Outcomes," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79918, Verein für Socialpolitik / German Economic Association.
    15. Doerr, Annabelle, 2017. "Back to work: The Long-term Effects of Vocational Training for Female Job Returners," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168213, Verein für Socialpolitik / German Economic Association.
    16. Matti Sarvimäki & Kari Hämäläinen, 2016. "Integrating Immigrants: The Impact of Restructuring Active Labor Market Programs," Journal of Labor Economics, University of Chicago Press, vol. 34(2), pages 479-508.
    17. Anita Wölfl & Juan S. Mora-Sanguinetti, 2011. "Reforming the Labour Market in Spain," OECD Economics Department Working Papers 845, OECD Publishing.
    18. Anthony Strittmatter, 2016. "What effect do vocational training vouchers have on the unemployed?," IZA World of Labor, Institute of Labor Economics (IZA), pages 316-316, November.
    19. Poeschel, Friedrich, 2014. "Assignment vs. choice: lessons from training vouchers," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100606, Verein für Socialpolitik / German Economic Association.
    20. Miroslav Stefanik, 2021. "Shifting the Training Choice Decision to the Jobseeker—The Slovak Experience," LABOUR, CEIS, vol. 35(2), pages 192-213, June.
    21. Birca Alic, 2024. "Increasing Sustainable Employment By Involving Organisations In The Vocational Training Of The Unemployed," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 34-44, August.

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    More about this item

    Keywords

    Active labor market policy; Program evaluation; Matching; Voucher; Caseworker; Training; J64; J68; H43;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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