Who is targeted by One-Euro-Jobs? A Selectivity Analysis

Katrin Hohmeyer and Eva Kopf

Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, 2009, vol. 129, issue 4, 597-636

Abstract: Major reforms of the unemployment benefit system were implemented in Germany in 2005. One controversial element of these reforms is the activation of means-tested benefit recipients by a workfare programme, so-called One-Euro-Jobs. Politically and numerically, One-Euro-Jobs are the most important programme for means-tested benefit recipients with more than 600,000 benefit recipients entering the programme per year. Using a sample from early 2005, this study investigates the selection of means-tested unemployment benefit recipients into One-Euro-Jobs in their introduction period. In particular, the different participation chances for men and women as well as for eastern and western Germans are analysed. While women have a lower probability of participating if they have a child under the age of three, there is no such difference to be found for men. We also find that young adults under 25 are more likely to begin a One-Euro-Job than other age groups. Moreover, special target groups such as individuals with a migration background are not promoted with One-Euro-Jobs. In fact, a concentration on defined target groups cannot be observed. To analyse the sizable differences in the participation probabilities of women in eastern and western Germany a Blinder-Oaxaca decomposition of effects is applied. It emerges that the differences can be traced back to a large extent to characteristics such as qualification level and employment history and to the availability of child care facilities.

JEL-codes: D78 J16 J68 (search for similar items in EconPapers)
Date: 2009
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Working Paper: Who is targeted by One-Euro-Jobs?: a selectivity analysis (2008)
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