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IZA
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New Evidence on the Effects of Job Creation Schemes in Germany - A Matching Approach with Threefold Heterogeneity
by
Reinhard Hujer, Marco Caliendo, Stephan L. Thomsen
(April 2003)
published in: Research in Economics, 2004, 58(4), 257-302
Abstract:
This paper evaluates the effects of job creation schemes on the participating individuals in
Germany. Since previous empirical studies of these measures have been based on relatively
small datasets and focussed on East Germany, this is the first study which allows to draw
policy-relevant conclusions. The very informative and exhaustive dataset at hand not only
justifies the application of a matching estimator but also allows to take account of threefold
heterogeneity. The recently developed multiple treatment framework is used to evaluate the
effects with respect to regional, individual and programme heterogeneity. The results show
considerable differences with respect to these sources of heterogeneity, but the overall
finding is very clear. At the end of our observation period, that is two years after the start of
the programmes, participants in job creation schemes have a significantly lower success
probability on the labour market in comparison to matched non-participants.
Text: See Discussion Paper No. 750
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