Abstract

http://ssrn.com/abstract=1926683
 
 

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Do Lower Caseloads Improve the Effectiveness of Active Labor Market Policies? New Evidence from German Employment Offices


Jens Hainmueller


Stanford University - Department of Political Science; Stanford Graduate School of Business

Barbara Hofmann


Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

Gerhard Krug


Institute for Employment Research (IAB); University of Erlangen-Nuremberg - Chair of Empirial Economic Sociology

Katja Wolf


Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

September 13, 2011

MIT Political Science Department Research Paper No. 2011-22

Abstract:     
We study how the caseworker to client ratio affects the success of active labor market policies that aim to bring job-seekers into employment. Although existing evidence is limited, caseload is a potentially important policy parameter that affects both the quality and the administrative costs of employment services. Exploiting a unique pilot project by Germany's federal public employment agency that hired additional caseworkers in 14 of its 779 local employment offices, we find that lower caseloads resulted in a decrease in the rate and duration of local unemployment and a higher reemployment rate. Offices with lowered caseloads became more proactive and imposed more sanctions on clients with low search efforts and registered more new vacancies. Cost-benefit computations suggest that the costs from hiring additional caseworkers was offset by the savings from decreased benefit expenditures after a period of about ten months.

Number of Pages in PDF File: 35

Keywords: unemployment, job search, active labor market policy

JEL Classification: C14, H43, H83, J68

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Date posted: September 13, 2011 ; Last revised: October 17, 2011

Suggested Citation

Hainmueller, Jens and Hofmann, Barbara and Krug, Gerhard and Wolf, Katja, Do Lower Caseloads Improve the Effectiveness of Active Labor Market Policies? New Evidence from German Employment Offices (September 13, 2011). MIT Political Science Department Research Paper No. 2011-22. Available at SSRN: http://ssrn.com/abstract=1926683 or http://dx.doi.org/10.2139/ssrn.1926683

Contact Information

Jens Hainmueller (Contact Author)
Stanford University - Department of Political Science ( email )
Stanford, CA 94305
United States
HOME PAGE: http://www.stanford.edu/~jhain/
Stanford Graduate School of Business ( email )
518 Memorial Way
Stanford, CA 94305-5015
United States
Barbara Hofmann
Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )
Regensburger Str. 104
Nuremberg, 90478
Germany
Gerhard Krug
Institute for Employment Research (IAB) ( email )
Regensburger Str. 104
Nuremberg, 90478
Germany
HOME PAGE: http://www.iab.de/asp/mitarbeiterDB/showMitarbeiter.asp?pkyMitarbeiter=207
University of Erlangen-Nuremberg - Chair of Empirial Economic Sociology ( email )
Findelgasse 7/9
Nuremberg, 90402
Germany
HOME PAGE: http://www.sozialforschung.rw.uni-erlangen.de/lehrstuhlteam/mitarbeiterinnen/gerhard-krug.shtml
Katja Wolf
Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )
Regensburger Str. 104
Nuremberg, 90478
Germany
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