Give it Another Try: What are the Effects of a Job Creation Scheme Especially Designed for Hard-to-Place Workers?

Tobias Brändle () and Lukas Fervers

VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy from Verein für Socialpolitik / German Economic Association

Abstract: Job creation schemes (JCSs) have for a long time been considered to function as stepping stone for unemployed workers into the labour market. However, previous research has shown that public job creation schemes could at best be effective for persons with little or no employment chances. This paper contributes to this discussion by studying the effect of a very large and innovative JCS which employs an extraordinary selection mechanism to identify this group. Relying on a combination of administrative data and survey data, we employ radius-matching with regression adjustment to estimate treatment effects. Our results indicate that the effects are still negative but weaker than the ones reported in previous studies. We argue that this is due to a principal-agent problem at the very last step of the selection process which undermines the intention of the programme. Furthermore, we point to effect heterogeneity with regard to programme duration which suggests that the results are more optimistic for shorter contracts. Finally, we show that the results are sensitive to the inclusion of survey variables, even if high quality administrative data are available.

Keywords: active labour market programme; job creation scheme; public employment programme; propensity score matching; employability; integrated employment biographies (search for similar items in EconPapers)
JEL-codes: J18 J24 J68 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/181536/1/VfS-2018-pid-13138.pdf (application/pdf)

Related works:
Journal Article: Give it Another Try: What are the Effects of a Job Creation Scheme Especially Designed for Hard-to-Place Workers? (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc18:181536

Access Statistics for this paper

More papers in VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy from Verein für Socialpolitik / German Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().