Faculty of Economics and Business Administration Publications Database

Identifying Effect Heterogeneity to Improve the Effiency of Job Creation Schemes in Germany?

Caliendo, Marco
Thomsen, Stephan L.
Volume: 40
Number: 9
Pages: 1101 - 1122
ISSN-Print: 0003-6846
Link External Source: Online Version
Year: 2008
Keywords: Evaluation, Active Labour Market Policy, Targeting, Efficient Allocation, Effect Heterogeneity
Abstract: Previous empirical studies of job creation schemes in Germany have shown that the average e®ects for the participating individuals are negative. However, we find that this is not true for all strata of the population. Identifying individual characteristics that are responsible for the effect heterogeneity and using this information for a better allocation of individuals therefore bears some scope for improving programme efficiency. We present several stratification strategies and discuss the occurring effect heterogeneity. Our findings show that job creation schemes do neither harm nor improve the labour market chances for most of the groups. Exceptions are long-term unemployed men in West and long-term unemployed women in East and West Germany who benefit from participation in terms of higher employment rates.