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

36 Pages Posted: 29 Apr 2005 Last revised: 11 Sep 2018

See all articles by Marco Caliendo

Marco Caliendo

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

Reinhard Hujer

University of Frankfurt; IZA Institute of Labor Economics

Stephan L. Thomsen

Leibniz Universität Hannover - Institute of Economics; IZA Institute of Labor Economics; ZEW – Leibniz Centre for European Economic Research - Labour Markets, Human Resources and Social Policy Department

Date Written: February 2005

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.

Keywords: Evaluation, active labour market policy, targeting, efficient allocation, effect heterogeneity

JEL Classification: C13, H43, J68

Suggested Citation

Caliendo, Marco and Hujer, Reinhard and Thomsen, Stephan Lothar, Identifying Effect Heterogeneity to Improve the Effiency of Job Creation Schemes in Germany? (February 2005). ZEW - Centre for European Economic Research Discussion Paper No. 05-021. Available at SSRN: https://ssrn.com/abstract=711065 or http://dx.doi.org/10.2139/ssrn.711065

Marco Caliendo (Contact Author)

University of Potsdam ( email )

August-Bebel Strasse 89
Potsdam, 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

Reinhard Hujer

University of Frankfurt ( email )

Institute for Statistics and Econometrics
60054 Frankfurt
Germany
+49 798 23673 (Fax)

IZA Institute of Labor Economics

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

Stephan Lothar Thomsen

Leibniz Universität Hannover - Institute of Economics ( email )

United States

IZA Institute of Labor Economics ( email )

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

ZEW – Leibniz Centre for European Economic Research - Labour Markets, Human Resources and Social Policy Department ( email )

P.O.Box 10 34 43
D-68034
Germany

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