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The threat effect of participation in active labor market programs on job search behavior of migrants in Germany

Author

Listed:
  • Bergemann, Annette

    (Department of Economics, University of Mannheimn)

  • Caliendo, Marco

    (DIW Berlin)

  • van den Berg, Gerard J.

    (IFAU - Institute forLabour Market Policy Evaluation)

  • Zimmermann, Klaus F.

    (University of Bonn)

Abstract

Labor market programs may affect unemployed individuals’ behavior before they enroll. Such ex ante effects may differ according to ethnic origin. We apply a novel method that relates self-reported perceived treatment rates and job search behav­ioral outcomes, such as the reservation wage or search intensity, to each other. We compare German native workers with migrants with a Turkish origin or Central and Eastern European (including Russian) background. Job search theory is used to de­rive theoretical predictions. We examine the omnibus ex ante effect of the German ALMP system, using the novel IZA Evaluation Data Set, which includes self-reported assessments of the variables of interest as well as an unusually detailed amount of in­formation on behavior, attitudes and past outcomes. We find that the ex ante threat effect on the reservation wage and search effort varies considerably among the groups considered.

Suggested Citation

  • Bergemann, Annette & Caliendo, Marco & van den Berg, Gerard J. & Zimmermann, Klaus F., 2011. "The threat effect of participation in active labor market programs on job search behavior of migrants in Germany," Working Paper Series 2011:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2011_004
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    References listed on IDEAS

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    8. Caliendo, Marco & Künn, Steffen, 2011. "Start-up subsidies for the unemployed: Long-term evidence and effect heterogeneity," Journal of Public Economics, Elsevier, vol. 95(3), pages 311-331.
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    11. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
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    14. Gerard J. van den Berg & Annette H. Bergemann & Marco Caliendo, 2009. "The Effect of Active Labor Market Programs on Not-Yet Treated Unemployed Individuals," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 606-616, 04-05.
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    16. Yann Algan & Christian Dustmann & Albrecht Glitz & Alan Manning, 2010. "The Economic Situation of First and Second-Generation Immigrants in France, Germany and the United Kingdom," Economic Journal, Royal Economic Society, vol. 120(542), pages 4-30, February.
    17. Rafael Lalive & Jan C. van Ours & Josef Zweimüller, 2005. "The Effect Of Benefit Sanctions On The Duration Of Unemployment," Journal of the European Economic Association, MIT Press, vol. 3(6), pages 1386-1417, December.
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    19. Werner Eichhorst & Klaus F. Zimmermann, 2007. "And Then There Were Four ...: How Many (and Which) Measures of Active Labor Market Policy Do We Still Need? ; Finding a Balance after the Evaluation of the Hartz Reforms in Germany," Discussion Papers of DIW Berlin 685, DIW Berlin, German Institute for Economic Research.
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    24. Giacomi De Giorgi, 2005. "Long-term effects of a mandatory multistage program: the New Deal for young people in the UK," IFS Working Papers W05/08, Institute for Fiscal Studies.
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The Threat Effect of Participation in Active Labor Market Programs on Job Search Behavior of Migrants in Germany
      by maximorossi in NEP-LTV blog on 2011-03-22 02:33:45

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    Cited by:

    1. Bruce Headey & Ruud Muffels, 2016. "Towards a Theory of Life Satisfaction: Accounting for Stability, Change and Volatility in 25-Year Life Trajectories in Germany," SOEPpapers on Multidisciplinary Panel Data Research 864, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Marco Caliendo & Armin Falk & Lutz C. Kaiser & Hilmar Schneider & Arne Uhlendorff & Gerard van den Berg & Klaus F. Zimmermann, 2011. "The IZA Evaluation Dataset: towards evidence‐based labor policy making," International Journal of Manpower, Emerald Group Publishing Limited, vol. 32(7), pages 731-752, October.
    3. Nanos, Panagiotis & Schluter, Christian, 2014. "The composition of wage differentials between migrants and natives," European Economic Review, Elsevier, vol. 65(C), pages 23-44.
    4. Hohmeyer, Katrin & Wolff, Joachim, 2016. "Of carrots and sticks: The effect of workfare announcements on the job search behaviour and reservation wage of welfare recipients," VfS Annual Conference 2016 (Augsburg): Demographic Change 145523, Verein für Socialpolitik / German Economic Association.
    5. Eskil Heinesen & Leif Husted & Michael Rosholm, 2013. "The effects of active labour market policies for immigrants receiving social assistance in Denmark," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-22, December.
    6. Rüdiger Wapler & Daniel Werner & Katja Wolf, 2018. "Active labour market policies in Germany: do regional labour markets benefit?," Applied Economics, Taylor & Francis Journals, vol. 50(51), pages 5561-5578, November.
    7. 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.
    8. Schmieder, Johannes F & Trenkle, Simon, 2020. "Disincentive effects of unemployment benefits and the role of caseworkers," Journal of Public Economics, Elsevier, vol. 182(C).
    9. Johansson, Per & Lee, Myoung-jae, 2016. "On Nonparametric Identification of Treatment Effects in Duration Models," IZA Discussion Papers 10247, Institute of Labor Economics (IZA).
    10. Ulf Rinne, 2013. "The evaluation of immigration policies," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 28, pages 530-552, Edward Elgar Publishing.
    11. Theodoropoulos, Nikolaos & Voucharas, Georgios, 2023. "Firm Closures and Labor Market Policies in Europe: Evidence from Retrospective Longitudinal Data," GLO Discussion Paper Series 1288, Global Labor Organization (GLO).
    12. Chiara Natalie Focacci, 2020. "“You reap what you sow”: Do active labour market policies always increase job security? Evidence from the Youth Guarantee," European Journal of Law and Economics, Springer, vol. 49(3), pages 373-429, June.
    13. Vikström, Johan & Rosholm, Michael & Svarer, Michael, 2011. "The relative efficiency of active labour market policy: evidence from a social experiment and non-parametric methods," Working Paper Series 2011:7, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    14. Caliendo, Marco & Uhlendorff, Arne, 2010. "Determinanten des Suchverhaltens von Arbeitslosen: Ausgewählte Erkenntnisse basierend auf dem IZA Evaluationsdatensatz," IZA Discussion Papers 5379, Institute of Labor Economics (IZA).
    15. Nisar Ahmad & Michael Svarer & Amjad Naveed, 2019. "The Effect of Active Labour Market Programmes and Benefit Sanctions on Reducing Unemployment Duration," Journal of Labor Research, Springer, vol. 40(2), pages 202-229, June.
    16. Gockel, Ryan P. & Cullen, Alison C., 2013. "Willing, but Unable: Determinants of Participation Rates for TrainingWorkshops in Central Vietnam," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 3(10), pages 1-15, October.

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    More about this item

    Keywords

    Immigrants; policy evaluation; reservation wage; search effort; expectations; unemploy­ment duration; program evaluation; active labor market policy.;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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