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Competence Centre on Microeconomic Evaluation - Tools

Short-term training programs for immigrants in the German welfare system: do effects differ from natives and why?

We evaluate the individual employment effects of four types of short-term training for immigrants and natives in the German welfare system and identify differences in the effects determined by unobservable factors. Based on comprehensive and unique administrative data, we apply propensity score matching in a dynamic setting to estimate the treatment effects and suggest the identification of unexplained effect differences between groups. The results show a mixed picture: two types of training increase the employment chances of immigrants, whereas the other two are rather ineffective.

The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany After Unification

We analyse the effects of government-sponsored training for the unemployed conducted during East German transition. For the microeconometric analysis, we use a new, large and informative administrative database that allows us to use matching methods to address potential selection bias, to study different types of programmes and to observe labour market outcomes over eight years. We find strong evidence that, on average, the training programmes under investigation increase long-term employment prospects and earnings.

Evaluating the dynamic employment effects of training programs in East Germany using conditional difference-in-differences

This study analyzes the employment effects of training in East Germany. We propose and apply an extension of the widely used conditional difference-in-differences estimator. Focusing on transition rates between nonemployment and employment, we take into account that employment is a state- and duration-dependent process. Our results show that using transition rates is more informative than using unconditional employment rates as commonly done in the literature.

Employment effects of the provision of specific professional skills and techniques in Germany

Based on unique administrative data, which has only recently become available, this paper estimates the employment effects of the most important type of public sector sponsored training in Germany, namely the provision of specific professional skills and techniques (SPST). Using the inflows into unemployment for the year 1993, the empirical analysis uses local linear matching based on the estimated propensity score to estimate the average treatment effect on the treated of SPST programs by elapsed duration of unemployment.

The Relative Effectiveness Of Selected Active Labor Market Programs: An Empirical Investigation For Germany

For Germany, we estimate the relative effectiveness of training programs and job creation schemes. We pay particular attention to problems of common support that may arise in cross-program comparisons. Furthermore, we show that the use of different outcome variables may lead to different conclusions. In particular, the group of participants in job creation schemes may be too different from training participants to conduct a reliable comparison. Participants in shorter training programs spend more time in employment than those in longer programs; this is mainly due to less lock-in effects.

Temporary work as an active labor market policy: Evaluating an innovative program for disadvantaged youths

While high rates of youth unemployment are a severe problem in most European countries, the program evaluation literature shows that disadvantaged youths constitute a group that is particularly difficult to assist effectively. As innovative measures are thus needed, we evaluate a German pilot program that targets low-skilled young unemployed and combines three components: a) individual coaching, b) classroom training and c) temporary work.

Do the skilled and prime-aged unemployed benefit more from training? Effect heterogeneity of public training programmes in Germany

This study analyses the treatment effects of public training programmes for the unemployed in Germany. Based on propensity score matching methods, we extend the picture that has been sketched in previous studies by estimating the treatment effects of medium-term programmes for different skill and age groups. Our results indicate that programme participation has a positive impact on employment probabilities and earnings for almost all sub-groups. We find little evidence for the presence of heterogeneous treatment effects, and the magnitude of the differences is quite small.

Dejà vu? Short-term training in Germany 1980 - 1992 and 2000 - 2003

Short-term training has recently become the largest active labor market program in Germany regarding the number of participants. Little is known about the effectiveness of different types of short-term training, particularly their long-run effects. This paper estimates the effects of short-term training programs in West Germany starting in the time periods 1980 - 1992 and 2000 - 2003 on the three outcomes employment, earnings, and participation in long-term training programs. We find that short-term training shows mostly persistently positive and often significant employment effects.

Vouchers and caseworkers in training programs for the unemployed

This paper studies the role of vouchers and caseworkers in training programs for the unemployed. We explore the unique features of the Hartz reform in Germany which simultaneously introduced training vouchers and imposed more selective criteria on participants. This allows us to go beyond the standard approach when we estimate the treatment effects for the most important type of training.

Do German Welfare-to-Work Programmes Reduce Welfare Dependency and Increase Employment?

During the last decade, many Western economies reformed their welfare systems with the aim of activating welfare recipients by increasing welfare-to-work programmes (WTWP) and job-search enforcement. We evaluate the short-term effects of three important German WTWP implemented after a major reform in January 2005 ( Hartz IV ), namely short training, further training with a planned duration of up to three months and public workfare programmes ( One-Euro-Jobs ).

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