Do Firms Benefit from Active Labour Market Policies?

Michael Lechner, Conny Wunsch and Patrycja Scioch

No 9642, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper investigates the link between variation in the supply of workers who participate in specific types of active labour market policies (ALMPs) and firm performance using a new exceptionally informative German employer-employee data base. For identification we exploit that German local employment agencies (LEAs) have a high degree of autonomy in determining their own mix of ALMPs and that firms' hiring regions overlap only imperfectly with the areas of responsibility of the LEAs. Our results indicate that in general firms do not benefit from ALMPs and in some cases may even be harmed by certain programs, in particular by subsidized employment and longer training programs. These findings complement the negative assessment of the cost-effectiveness of ALMPs from the empirical literature on the effects for participants.

Keywords: Program evaluation; Regional variation; Subsidized employment programs; Training programs (search for similar items in EconPapers)
JEL-codes: J68 (search for similar items in EconPapers)
Date: 2013-09
New Economics Papers: this item is included in nep-eur and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Related works:
Working Paper: Do Firms Benefit from Active Labour Market Policies? (2013)
Working Paper: Do Firms Benefit from Active Labour Market Policies? (2013)
Working Paper: Do Firms Benefit from Active Labour Market Policies? (2013)
Working Paper: Do Firms Benefit from Active Labour Market Policies? (2013)
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