Abstract

In this project, we use randomized experiments to evaluate labor market programs for two important groups of disadvantaged workers in the labor force: older unemployed workers as well as low-skilled and older employed workers. Despite the resilience of the German labor market in the face of the worldwide financial crisis, these two groups face labor market difficulties that may intensify in the future. German labor market policy contains a number of unique programs that do not exist in other countries and hence call for a careful evaluation. First, we investigate to what extent knowledge about subsidies for in-company training of low-skilled and older employed workers improves their labor market outcomes. Second, we analyze to what extent knowledge about a targeted wage support program for older unem-ployed workers affects their labor market outcomes. In each case, we examine effects on the employment probability, wages, and other job characteristics. Furthermore, we analyze to what extent these programs produce deadweight losses. The analysis is based on combined survey and register data