Abstract

http://ssrn.com/abstract=1765650
 
 

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The Threat Effect of Participation in Active Labor Market Programs on Job Search Behavior of Migrants in Germany


Annette Bergemann


University of Bristol - Department of Economics; Institute for the Study of Labor (IZA); IFAU - Institute for Labour Market Policy Evaluation

Marco Caliendo


University of Potsdam; Institute for the Study of Labor (IZA)

Gerard J. van den Berg


VU University Amsterdam - Department of Economics; Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA); Tinbergen Institute

Klaus F. Zimmermann


Harvard University; German Institute for Economic Research (DIW Berlin); University of Bonn; Centre for Economic Policy Research (CEPR)

February 1, 2011

IZA Discussion Paper No. 5485

Abstract:     
Labor market programs may affect unemployed individuals' behavior before they enroll. Such ex ante effects may differ according to ethnic origin. We apply a novel method that relates self-reported perceived treatment rates and job search behavioral outcomes, such as the reservation wage or search intensity, to each other. We compare German native workers with migrants with a Turkish origin or Central and Eastern European (including Russian) background. Job search theory is used to derive theoretical predictions. We examine the omnibus ex ante effect of the German ALMP system, using the novel IZA Evaluation Data Set, which includes self-reported assessments of the variables of interest as well as an unusually detailed amount of information on behavior, attitudes and past outcomes. We find that the ex ante threat effect on the reservation wage and search effort varies considerably among the groups considered.

Number of Pages in PDF File: 24

Keywords: immigrants, policy evaluation, reservation wage, search effort, expectations, unemployment duration, program evaluation, active labor market policy

JEL Classification: J64, J61, C21, D83, D84


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Date posted: February 21, 2011  

Suggested Citation

Bergemann, Annette and Caliendo, Marco and van den Berg, Gerard J. and Zimmermann, Klaus F., The Threat Effect of Participation in Active Labor Market Programs on Job Search Behavior of Migrants in Germany (February 1, 2011). IZA Discussion Paper No. 5485. Available at SSRN: http://ssrn.com/abstract=1765650

Contact Information

Annette Bergemann (Contact Author)
University of Bristol - Department of Economics ( email )
8 Woodland Road
Bristol BS8 ITN
United Kingdom
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany

IFAU - Institute for Labour Market Policy Evaluation ( email )
Box 513
751 20 Uppsala
Sweden
Marco Caliendo
University of Potsdam ( email )
August-Bebel Strasse 89
Potsdam, DE 14482
Germany
+49(0)331/9773225 (Phone)
+49(0)331/9773210 (Fax)
HOME PAGE: http://www.uni-potsdam.de/en/empwifo/news.html
Institute for the Study of Labor (IZA) ( email )
P.O. Box 7240
Bonn, D-53072
Germany

Gerard J. Van den Berg
VU University Amsterdam - Department of Economics ( email )
De Boelelaan 1105
1081 HV Amsterdam
Netherlands
+31 20 444 6132 (Phone)
+32 20 444 6020 (Fax)
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany

Tinbergen Institute
Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands
Klaus F. Zimmermann
Harvard University ( email )
1875 Cambridge Street
Cambridge, MA 02138
United States
German Institute for Economic Research (DIW Berlin)
Mohrenstraße 58
Berlin, 10117
Germany
University of Bonn
Postfach 2220
Bonn, D-53012
Germany
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
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