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Identifying Effect Heterogeneity to Improve the Efficiency of Job Creation Schemes in Germany

Untersuchung der Effektheterogenität zur Verbesserung der Effektivität von Arbeitsbeschaffungsmaßnahmen in Deutschland
[journal article]

Caliendo, Marco; Hujer, Reinhard; Thomsen, Stephan L.

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Abstract Previous empirical studies of job creation schemes in Germany have shown that the average effects for the participating individuals are negative. However, we find that this is not true for all strata of the population. Identifying individual characteristics that are responsible for the effect heterogeneity and using this information for a better allocation of individuals therefore bears some scope for improving programme efficiency. We present several stratification strategies and discuss the occurring effect heterogeneity. Our findings show that job creation schemes do neither harm nor improve the labour market chances for most of the groups. Exceptions are long-term unemployed men in West and long-term unemployed women in East and West Germany who benefit from participation in terms of higher employment rates.
Classification Labor Market Policy
Document language English
Publication Year 2008
Page/Pages p. 1101-1122
Journal Applied Economics, 40 (2008) 9
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)