Do Job Creation Schemes Improve the Social Integration and Well-Being of the Long-Term Unemployed?

57 Pages Posted: 13 Nov 2019

See all articles by Boris Ivanov

Boris Ivanov

ZEW – Leibniz Centre for European Economic Research

Friedhelm Pfeiffer

Centre for European Economic Research (ZEW); University of Mannheim - Department of Economics; IZA Institute of Labor Economics

Laura Pohlan

ZEW – Leibniz Centre for European Economic Research; Institute for Employment Research (IAB)

Date Written: 2019

Abstract

In this paper we analyze the effects of a German job creation scheme (JCS) on the social integration and well-being of long-term unemployed individuals. Using linked survey and administrative data for participants and a group of matched non-participants, we find significant positive effects of being employed within this program. They are larger for individuals with health impairments and above-average duration of welfare dependence. The program effects decline over time, which cannot be explained by decreasing levels of well-being and social integration of the participants. Instead, this decrease is driven by a rising share of controls who find a job and catch up to similar outcome levels as program participants. Overall, our results suggest that JCSs can be an efficient labor market policy instrument to improve the quality of life of the long-term unemployed.

Keywords: unemployment, active labor market policy, job creation schemes, wellbeing, social integration, matching

JEL Classification: I31, J64

Suggested Citation

Ivanov, Boris and Pfeiffer, Friedhelm and Pohlan, Laura and Pohlan, Laura, Do Job Creation Schemes Improve the Social Integration and Well-Being of the Long-Term Unemployed? (2019). ZEW - Centre for European Economic Research Discussion Paper No. 19-048, Available at SSRN: https://ssrn.com/abstract=3486130 or http://dx.doi.org/10.2139/ssrn.3486130

Boris Ivanov

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Friedhelm Pfeiffer (Contact Author)

Centre for European Economic Research (ZEW) ( email )

D-68161 Mannheim
Germany
++49 (0)621/1235-150 (Phone)
++49 (0)621/1235-225 (Fax)

University of Mannheim - Department of Economics

D-68131 Mannheim
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Laura Pohlan

Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

ZEW – Leibniz Centre for European Economic Research ( email )

L 7,1
Mannheim, 68161
Germany

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