Effectiveness of One-Euro-Jobs: Do programme characteristics matter?

Katrin Hohmeyer ()
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Katrin Hohmeyer: Institute for Employment Research - Institute for Employment Research

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Abstract: Recent German labour market reforms introduced a large scale workfare programme called One-Euro-Jobs to activate welfare recipients and improve their employment prospects. In programme design leeway is left to regional actors. Using administrative data and Propensity Score Matching, this article investigates the association between programme design and effectiveness, so as to provide insight on how to increase programme effectiveness. First, effects of different types of One-Euro-Jobs according to planned duration and weekly working hours compared to 'waiting' are estimated. Second, programme types are compared directly to disentangle selection and programme effects. As expected lock-in effects are larger for participations with a longer planned duration, but not for those with longer weekly working hours. One-Euro-Jobs do not generally increase the employment prospects for East German men beyond 2 years after programme start and longer and more intensive participations even decrease employment prospects. In West Germany, One-Euro-Jobs generally increase the employment chances and longer participations lead to slightly greater employment opportunities roughly 2 years after programme start. The initial advantages of short participations decrease over time. Following these results, a reallocation of participants might improve programme effectiveness.

Keywords: Social; Sciences; &; Humanities (search for similar items in EconPapers)
Date: 2011-07-20
Note: View the original document on HAL open archive server: https://hal.science/hal-00719485
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Citations: View citations in EconPapers (1)

Published in Applied Economics, 2011, pp.1. ⟨10.1080/00036846.2011.591734⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00719485

DOI: 10.1080/00036846.2011.591734

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