Participation of unemployment benefit recipients in active labor market programs: before and after the German labor market reforms

Gesine Stephan and Kathi Zickert

No 200815, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "Between 2005 and 2007 the German government raised a per-capita amount of around 10.000 Euros for each transition out of unemployment benefit receipt into basic social care, to be paid by the unemployment insurance. The so called 'Aussteuerungsbetrag' set strong incentives that investments in active labor market programs for unemployment benefit recipients should pay off - in terms of an exit from registered unemployment - before a transition into basic social care for needy jobseekers occurred. This raised considerable public concerns that less programs would be granted, in particular for hard-to-place workers. Our paper analyzes if these concerns were justified. We compare four cohorts, eligible for unemployment benefits at the beginning of their unemployment spell during March of the years 2003 to 2006. We conduct some descriptive analyses and estimate piecewise constant exponential hazard models to investigate the correlation between individual characteristics and transition rates into programs. The results show that transition rates into programs were in fact low across the 2005 cohort, but rather high for the 2006 cohort. The expectation that particular disadvantaged groups of unemployed would participate less in active labor market programs in the postreform period is not confirmed; their transition rates into programs were significantly higher across the 2006 cohort than in pre-reform cohorts." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Aussteuerungsbetrag; Auswirkungen; Erfolgskontrolle; Hartz-Reform; schwervermittelbare Arbeitslose; Teilnehmerstruktur; Arbeitslose; arbeitsmarktpolitische Maßnahme; Zu- und Abgänge; 2005-2007 (search for similar items in EconPapers)
JEL-codes: J64 J65 J68 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2008
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:200815

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