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Start me up: The effectiveness of a self-employment programme for needy unemployed people in Germany

Author

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  • Wolff, Joachim

    (IAB)

  • Nivorozhkin, Anton

    (IAB)

Abstract

"In recent years activation of means-tested unemployment benefit recipients has become a major issue of European labour market policy. We study the effect of participation in a new business start-up scheme for needy unemployed people in Germany. The programme was introduced at the beginning of the year 2005 together with a new means-tested benefit system. We used data from administrative records to draw a sample of needy participants who entered the programme from February to April 2005 and of an adequate control group. Even though these data are quite rich in terms of information on the labour market performance and individual and household characteristics, they do not provide information on unsubsidised self-employment. Therefore, using matching methods we estimate the impact of the programme participation on the outcomes 'neither being registered as unemployed nor as a job-seeker' and 'no receipt of unemployment benefit II'. Our estimates imply that even by the time when nearly no participant receives the start-up subsidy any longer treatment reduces considerably the proportion of registered job-seekers and of means-tested benefit recipients among the treated. Moreover, there is no substantial variation of these effects over different population groups." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Wolff, Joachim & Nivorozhkin, Anton, 2008. "Start me up: The effectiveness of a self-employment programme for needy unemployed people in Germany," IAB-Discussion Paper 200820, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:200820
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    References listed on IDEAS

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    1. Noll, Susanne & Wolff, Joachim & Nivorozhkin, Anton, 2006. "Förderung mit dem Einstiegsgeld nach § 29 SGB II : erste Befunde zur Implementation und Deskription," IAB-Forschungsbericht 200623, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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    6. Hans J. Baumgartner & Marco Caliendo, 2008. "Turning Unemployment into Self‐Employment: Effectiveness of Two Start‐Up Programmes," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(3), pages 347-373, June.
    7. Hohmeyer, Katrin & Wolff, Joachim, 2007. "A fistful of Euros: Does One-Euro-Job participation lead means-tested benefit recipients into regular jobs and out of unemployment benefit II receipt?," IAB-Discussion Paper 200732, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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    11. Bernhard, Sarah & Wolff, Joachim, 2008. "Contracting out placement services in Germany : is assignment to private providers effective for needy job-seekers?," IAB-Discussion Paper 200805, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    12. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
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    15. Jacobi, Lena & Kluve, Jochen, 2007. "Before and after the Hartz reforms: The performance of active labour market policy in Germany," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(1), pages 45-64.
    16. Rüb, Felix & Werner, Daniel, 2007. "Typisierung von SGB II Trägern," IAB-Forschungsbericht 200701, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    17. Begona Cueto & Javier Mato, 2006. "An analysis of self-employment subsidies with duration models," Applied Economics, Taylor & Francis Journals, vol. 38(1), pages 23-32.
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    Cited by:

    1. Heyer, Gerd & Koch, Susanne & Stephan, Gesine & Wolff, Joachim, 2012. "Evaluation der aktiven Arbeitsmarktpolitik: Ein Sachstandsbericht für die Instrumentenreform 2011 (Evaluation of active labor market programs : a summary of recent results for the German program refor," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 45(1), pages 41-62.
    2. Marco Caliendo & Jens Hogenacker, 2012. "The German labor market after the Great Recession: successful reforms and future challenges," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-24, December.
    3. Fuchs, Michaela & Wesling, Mirko & Weyh, Antje, 2014. "Potenzialnutzung in Ostdeutschland : eine Analyse von Angebot und Nachfrage auf dem Arbeitsmarkt," IAB-Forschungsbericht 201406, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Bernhard, Sarah & Gartner, Hermann & Stephan, Gesine, 2008. "Wage subsidies for needy job-seekers and their effect on individual labour market outcomes after the German reforms," IAB-Discussion Paper 200821, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Huber, Martin & Lechner, Michael & Wunsch, Conny & Walter, Thomas, 2009. "Do German Welfare-to-Work Programmes Reduce Welfare and Increase Work?," IZA Discussion Papers 4090, Institute of Labor Economics (IZA).
    6. Olivier Giraud & Arnaud Lechevalier, 2018. "The grey zone and labour market dynamics in Germany," Transfer: European Review of Labour and Research, , vol. 24(3), pages 317-336, August.
    7. Gerd Heyer & Susanne Koch & Gesine Stephan & Joachim Wolff, 2012. "Evaluation der aktiven Arbeitsmarktpolitik: Ein Sachstandsbericht für die Instrumentenreform 2011," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 45(1), pages 41-62, March.
    8. Haller, Stefanie & Wolff, Joachim & Zabel, Cordula, 2010. "Einstiegsgeld als Gründungsförderung : Teilnehmerstrukturen und Determinanten der Förderleistung (Initial subsidies for start-up entrepreneurs)," IAB-Forschungsbericht 201009, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Huber Martin & Lechner Michael & Wunsch Conny & Walter Thomas, 2011. "Do German Welfare-to-Work Programmes Reduce Welfare Dependency and Increase Employment?," German Economic Review, De Gruyter, vol. 12(2), pages 182-204, May.

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; berufliche Selbständigkeit ; Einstiegsgeld ; Erfolgskontrolle ; Hilfebedürftige ; Sozialgesetzbuch II ; Arbeitslosengeld II-Empfänger ; arbeitsmarktpolitische Maßnahme ; 2005-2005;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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