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

Katrin Hohmeyer ()
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Katrin Hohmeyer: Institute for Employment Research (IAB), Nuremberg, Germany

No 200920, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "Recent labour market reforms in Germany introduced a workfare programme called One-Euro-Jobs with roughly 700,000 means-tested benefit recipients participating per year. In programme design leeway is given to local actors to respond to regional and individual factors. The legislature has set only key features of One-Euro-Jobs: One-Euro-Jobs are required to be additional and temporary jobs of public interest. Using administrative data for participants who entered the programme in spring 2005 this paper investigates medium-term effects of the programme and the association between flexibility in design and effect heterogeneity. First, effects of different types of One-Euro-Jobs (according to planned duration and weekly working hours) compared to non-participation ('waiting') are estimated and second, programme types are compared directly by pairwise matching to disentangle selection and programme effects. As expected lock-in effects are larger for participation with a longer planned duration, whereas this is not the case for more intensive programmes in terms of working hours. In the medium term, One-Euro-Jobs do not generally increase the employment prospects for men in East Germany beyond two years after programme start and longer and more intensive participations even decrease employment prospects. In West Germany, One-Euro-Jobs in general increase the employment chances and longer participations lead to slightly higher employment opportunities roughly two years after programme start. The initial advantages of short participations decrease over time." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Ostdeutschland; Westdeutschland; berufliche Reintegration; Erfolgskontrolle; Geschlechterverteilung; Arbeitsgelegenheit; Arbeitslosengeld II-Empfänger; Arbeitsmarktchancen; Workfare; 2005-2007 (search for similar items in EconPapers)
JEL-codes: C13 I38 J68 (search for similar items in EconPapers)
Pages: 60 pages
Date: 2009
New Economics Papers: this item is included in nep-eec and nep-lab
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Published in/as: Applied Economics, Vol. 44, No. 33 (2012), S. 4469-4484, doi:10.1080/00036846.2011.591734

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:200920

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