Effectiveness of sequences of One-Euro-Jobs for welfare recipients in Germany

Abstract

"Empirical evidence reveals that German welfare recipients often participate in multiple active labour market programmes (ALMPs). However, evidence on the effectiveness of ALMPs exists mostly for single ALMP participations so far. This article evaluates the sequential participation in ALMPs for welfare recipients in Germany based on comprehensive administrative data to control for dynamic selection that arises in the evaluation of sequences. Using a dynamic causal model and an inflow sample of welfare recipients, the article analyses the effects of sequences of a public employment programme called One-Euro-Jobs on labour market outcomes. For female participants in One-Euro-Jobs in the first period, especially in West Germany, the results imply that participating in two consecutive One-Euro-Jobs compared with receiving only welfare benefits for two consecutive periods better facilitates integration into regular employment. Moreover, taking part in a One-Euro-Job directly after entry into welfare receipt is also more effective for participants in One-Euro-Jobs in the first period than taking part in a One-Euro-Job in a later period, especially for East German men (although not for West German women). However, I also find evidence of so-called programme careers and stepwise integration into regular employment." (Author's abstract, IAB-Doku) ((en))

Cite article

Dengler, K. (2015): Effectiveness of sequences of One-Euro-Jobs for welfare recipients in Germany. In: Applied Economics, Vol. 47, No. 57, p. 6170-6190. DOI:10.1080/00036846.2015.1066488