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Inhaltsbereich: Institut für Arbeitsmarkt- und Berufsforschung

Do lower caseloads improve the effectiveness of active labor market policies?

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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." (Author's abstract, IAB-Doku) ((en))

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Bibliographical information

Hainmueller, Jens; Hofmann, Barbara; Krug, Gerhard; Wolf, Katja (2011): Do lower caseloads improve the effectiveness of active labor market policies? * new evidence from German employment offices. (LASER discussion papers, 52), Erlangen, 35 p.
 

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