What Did All the Money Do? On the General Ineffectiveness of Recent West German Labour Market Programmes

Item Type Journal paper

We provide new evidence on the effectiveness of West German labour market programmes by evaluating training and employment programmes that have been conducted 2000-2002 after the first large reform of German labour market policy in 1998. We employ exceptionally rich administrative data that allow us to use microeconometric matching methods and to estimate interesting effects for different types of programmes and participants at a rather disaggregated level. We find that, on average, all programmes fail to improve their participants' chances of finding regular, unsubsidised employment. Rather, participants accumulate 2-13 more months of unemployment than nonparticipants over the 2.5 years following programme start, which, in addition to direct programme costs, induces net costs in terms of benefit payments and wage subsidies amounting to, on average, 1500-7000 EUR per participant. However, we show that there is some scope for improvements in mean employment rates as well as potential for considerable cost savings by a reallocation of participants and nonparticipants to the different programmes.
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Authors Wunsch, Conny & Lechner, Michael
Journal or Publication Title Kyklos : international review for social sciences
Language English
Keywords Matching estimation, causal effects, programme evaluation, panel data
Subjects economics
HSG Classification contribution to scientific community
Refereed Yes
Date 1 February 2008
Publisher Helbing & Lichtenhahn
Place of Publication Basel
Volume 61
Number 1
Page Range 134-174
Number of Pages 41
ISSN 0023-5962
ISSN-Digital 467-6435
Publisher DOI 10.1111/j.1467-6435.2008.00396.x
Depositing User Prof. Dr. Michael Lechner
Date Deposited 08 May 2007 16:08
Last Modified 23 Aug 2016 11:02
URI: https://www.alexandria.unisg.ch/publications/37084



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Wunsch, Conny & Lechner, Michael (2008) What Did All the Money Do? On the General Ineffectiveness of Recent West German Labour Market Programmes. Kyklos : international review for social sciences, 61 (1). 134-174. ISSN 0023-5962


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