Intensified activation for disadvantaged welfare recipients in Germany: does it work?

Abstract

"Purpose - This article analyses the implementation and the effectiveness of an intensified activation scheme for very disadvantaged welfare recipients in Germany, used as a targeting device for a very generous wage subsidy (JobPerspective).<br> Design/methodology/approach - Using administrative data and a difference-in-difference approach, we analyse the implementation of the activation scheme and its impact on various labour market outcomes. To ensure that target and comparison group are comparable over time, we control for various individual, household and regional characteristics.<br> Findings - The activation of the target group of disadvantaged welfare recipients is modestly intensified directly after the scheme's introduction. This does not improve the prospects of the target group to work in regular jobs, but - as a first step - in subsidized jobs. Considering a later period, we find evidence for broader activation efforts together with some gains in the regular employment for disadvantaged welfare recipients. Overall, our results suggest that the implementation of activation for disadvantaged welfare recipients as well as employment gains need time.<br> Originality/value - This study analyses whether and how a scheme of intensified activation that leaves its design to local actors without providing additional funding makes job centres implement such a policy. It provides evidence whether intensified activation succeeds in raising the employment prospects of very disadvantaged welfare recipients." (Author's abstract, IAB-Doku) ((en))

Cite article

Dengler, K., Hohmeyer, K., Moczall, A. & Wolff, J. (2013): Intensified activation for disadvantaged welfare recipients in Germany: does it work? In: The international journal of sociology and social policy, Vol. 33, No. 5/6, p. 289-308. DOI:10.1108/IJSSP-07-2012-0062