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Evaluating the German "Mini-Job" reform using a natural experiment

Evaluation der deutschen 'Mini-Job'-Reform mit Hilfe eines natürlichen Experiments

Caliendo, Marco; Wrohlich, Katharina


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Abstract Increasing work incentives for people with low income is a common topic in the policy debate across European countries. The "Mini-Job" reform in Germany had a similar motivation. We carry out an ex-post evaluation to identify the short-run effects of this reform. Our identification strategy uses an exogenous variation in the interview months in the SOEP, that allows us to distinguish groups that are affected by the reform from those who are not. To account for seasonal effects we additionally use a difference-in-differences strategy. Descriptives show that there is a post-reform increase in the number of Mini-jobs. However, we show that this increase can not be 'causally' related to the reform, since the short-run effects are very limited only. Only single men seem to react immediately and increase secondary job holding.
Thesaurusschlagwörter evaluation
Klassifikation Arbeitsmarktforschung; Arbeitsmarktpolitik
Freie Schlagwörter Natural Experiment; Difference-in-Differences; Marginal Employment
Sprache Dokument Englisch
Publikationsjahr 2009
Seitenangabe S. 2475-2489
Zeitschriftentitel Applied Economics, 42 (2009) 19
DOI http://dx.doi.org/10.1080/00036840701858125
Status Postprint; begutachtet (peer reviewed)
Lizenz PEER Licence Agreement (applicable only to documents from PEER project)