Job opportunities involving compensation of additional expense : An analysis of potential substitution effects using data from the IAB Establishment Panel

Abstract

"One-Euro-Jobs were introduced with the intention of improving the employment prospects of hard-to-place unemployed. However, there is a certain risk of within-firm substitution and between-firm displacement of regular employment by One-Euro-Jobs. The aim of the study is to identify potential substitution effects in establishments that participate in this job creation program. For this purpose I present some descriptive results from the survey 'Experience with One-Euro-Jobs' which was part of the IAB Establishment Panel in 2006 and 2007. In a further step I use data from the IAB Establishment Panel 2004 to 2007 to identify within-firm substitution effects. To account for selectivity, I apply a conditional difference-in-difference approach and propensity score matching. The empirical results indicate that regular employment relationships are not substituted by One-Euro-Jobs, which is true for both West Germany and East Germany." (Author's abstract, IAB-Doku) ((en))

Cite article

Hohendanner, C. (2009): Arbeitsgelegenheiten mit Mehraufwandsentschädigung. Eine Analyse potenzieller Substitutionseffekte mit Daten des IAB-Betriebspanels. (IAB-Discussion Paper 24/2009), Nürnberg, 49 p.