Abstract

This project focuses on unemployed means-tested benefit recipients in Germany without German citizenship. We analyze differences in active labor market program (ALMP) participation rates by citizenship. Moreover, we investigate which citizenship groups profit most from such employment programs. Due to language difficulties, non-German citizens who are recent immigrants might participate less often in ALMPs. However, immigrants might face important employment obstacles due to less initial information on the functioning of the labor market, fewer network contacts, non-recognized educational credentials or discrimination. ALMPs may be particularly beneficial for overcoming at least some of these obstacles and improving immigrants’ employment opportunities. A research question is whether employment effects of ALMPs differ between different citizenship groups. If certain citizenship groups consist predominantly of first-generation immigrants, initial employment obstacles and consequently positive employment effects of ALMPS may be greater than for citizenship groups with higher proportions of second-generation immigrants.
For the analyses, we use individual-level administrative data. The sampling time point is 31 August 2012. We will compare participation rates and employment effects of ALMPs between German and Turkish citizens, citizens of eastern European and of Asian countries, given sufficient sample sizes. Employment effects of the programs will be evaluated using matching methods.