Selektivität beim Zugang in Förderung durch betriebliche Einstellungshilfen (Selectivity in the process of entering wage subsidy programmes)

"A major aim of wage subsidies is to influence the demand for labour in favour of different target groups. In this paper individual determinants of the selection for different kinds of hiring subsidy programmes are examined. In order to analyse whether there are differences in the employment prospects of people entering subsidised employment and people moving from unemployment to employment without the support of a hiring subsidy, potential probabilities of remaining unemployed are simulated. The data base consists of a sample of people who entered subsidised employment in the first months of 1999 and a control sample of people who were registered as unemployed in January 1999. The results of the study can be summarised to the effect that characteristics which point to comparatively good employment prospects also have a positive influence on the access to subsidised employment. This selection of people who tend to have better employment prospects is counteracted by the eligibility rules for the types of subsidies targeting the hard to place." (Author's abstract, IAB-Doku) ((en))Einstellungszuschuss, Eingliederungszuschuss, arbeitsmarktpolitische Maßnahme - Erfolgskontrolle, Beschäftigungshilfe, Strukturanpassungsmaßnahme, Teilnehmerauswahl, Arbeitsmarktchancen, Arbeitslose, berufliche Reintegration, Lohnkostenzuschuss

Lohnkostenzuschüsse und individuelle Arbeitslosigkeit : Analysen auf der Grundlage kombinierter Erhebungs- und Prozessdaten unter Anwendung von Propensity Score Matching (Wage subsidies and individual unemployment : analyses on the basisof combined survey and process data using propensity score matching)

"The paper presents results from a micro-econometric evaluation of targeted wage subsidies for the Federal Republic of Germany. The influence of wage subsidies on the periods of unemployment of the people participating in a wage subsidy programme is examined. The data basis is an IAB survey conducted for evaluation purposes in selected employment offices in early 1999. Information regarding the destination of participants and nonparticipants is obtained from the administrative data of the Federal Employment Service (Bundesanstalt für Arbeit). The selected methodical approach for estimating the effects of the subsidies takes into account the possible correlation of inflow probabilities and outcome variables. The results of the study indicate for all types of subsidies that on average the periods of unemployment of the assisted people are reduced as a result of the assistance. However, for the instruments that are more strongly oriented towards target groups the assistance periods or the subsequent compulsory employment periods are not yet over. For the instruments that are less strongly oriented towards target groups the estimated effects of the subsidies in many cases no longer differ significantly from zero following the end of the assistance periods." (Author's abstract, IAB-Doku) ((en))Lohnkostenzuschuss - Auswirkungen, Arbeitslosigkeitsdauer, arbeitsmarktpolitische Maßnahme - Erfolgskontrolle

The effectiveness of targeted wage subsidies for hard-to-place workers

"Targeted wage subsidies paid to employers are an important element of active labour market policies in Germany. This paper uses propensity score matching to investigate their effect on subsidised hard-to-place workers. In a first scenario, we estimate the average treatment effect of a subsidy on previously unemployed individuals. A second scenario analyses the effects of a subsidy on employment probabilities conditional on takingup employment. The third scenario investigates the additional effect of a subsidy on individuals, who have participated in a short-term training measure beforehand. Summing up and in line with the literature, the results show that subsidies have a favourable effect on the employment prospects of participants." (author's abstract

Have labour market reforms at the turn of the millennium changed job durations of the new entrants? A comparative study for Germany and Italy

According to the aims of the labour market reforms of the 90s implemented in many European countries, workers may stay at their first job for a shorter time, but should be able to switch jobs easily. This would generate a trade-off between job opportunities and job stability. This paper addresses this issue using administrative longitudinal data for Germany and Italy, two countries which have undergone changes in regulations that can be summarised under the header of “deregulation”.The estimated piecewise constant job and employment duration models show that changes in the durations of the first job and employment - measured as the sum of multiple consecutive jobs - are observed in periods of labour market reforms. However, the existence of a trade-off is not confirmed by the results. In Germany, men have experienced an increase in employment stability over time, mated with somewhat longer job durations, while women have not benefitted from an increase in employment durations as a compensation for the marked decrease in their first job durations. In Italy, employment stability of the new entrants of both sexes has not improved after the reforms. The reduction in the duration of the first job has not been counterbalanced by an increase in the opportunity to find rapidly another job. These results suggest that the objective of increasing job opportunities by means of labour market deregulation has not been fully achieved.employment duration, work career, tenure, precarious jobs, labour market reforms, mixed proportional hazard

Have labour market reforms at the turn of the millennium changed job durations of the new entrants? A comparative study for Germany and Italy

According to the aims of the labour market reforms of the 90s implemented in many European countries, workers may stay at their first job for a shorter time, but should be ble to switch jobs easily. This would generate a trade-off between job opportunities and job stability. This paper addresses this issue using administrative longitudinal data for Germany and Italy, taken as representative examples of continuous and isolated reforms, respectively. The estimated piecewise constant job and employment duration models show that changes in the durations of the first job and employment - measured as the sum of multiple consecutive jobs - are observed in periods of labour market reforms. However, the existence of a trade-off is not confirmed by the results. In Germany, men have experienced an increase in employment stability over time, mated with somewhat longer job durations, while women have not benefitted from an increase in employment durations as a compensation for the marked decrease in their first job durations. In Italy, employment stability of the new entrants of both sexes has not improved after the reforms. The reduction in the duration of the first job has not been counterbalanced by an increase in the opportunity to find rapidly another job. These results suggest that the objective of increasing job opportunities by means of labour market deregulation has not been fully achieved.employment duration, work career, tenure, precarious jobs, labour market reforms, mixed proportional hazard.

The effectiveness of targeted wage subsidies for hard-to-place workers

Targeted wage subsidies paid to employers are an important element of active labour market policies in Germany. This paper uses propensity score matching to investigate their effect on subsidised hard-to-place workers. In a first scenario, we estimate the average treatment effect of a subsidy on previously unemployed individuals. A second scenario analyses the effects of a subsidy on employment probabilities conditional on takingup employment. The third scenario investigates the additional effect of a subsidy on individuals, who have participated in a short-term training measure beforehand. Summing up and in line with the literature, the results show that subsidies have a favourable effect on the employment prospects of participants

Doing well in reforming the labour market? Recent trends in job stability and wages in Germany

The German employment miracle with a weak decline in employment and low unemployment during the great recession seems to be a good example for a successful labour market reform. While the aggregate level of job turnover seems to be stable over time, there are nevertheless concerns about rising inequality in the labour market. In this paper we analyze the quality of newly started jobs between 1998 and 2010 using a huge administrative data set which allows to look at job durations and earnings for different groups of workers over time. Microeconometric models of job stability and wages are estimated to control for a wide range of individual, firm and regional characteristics. Our results show a fairly constant level of overall job stability but decreasing wages and rising wage dispersion over time, which is in line with wage moderation explanations of the employment miracle. In a further analysis we focus on certain groups of workers with disadvantages in job duration and wages, like low skilled, formerly unemployed and temporary agency workers. Again, we find evidence of a rise in job durations of new jobs accompanied by a decrease in wages

Have labour market reforms at the turn of the millennium changed job durations of the new entrants? A comparative study for Germany and Italy

According to the aims of the labour market reforms of the 90s implemented in many European countries, workers may stay at their first job for a shorter time, but should be able to switch jobs easily. This would generate a trade-off between job opportunities and job stability. This paper addresses this issue using administrative longitudinal data for Germany and Italy, taken as representative examples of continuous and isolated reforms, respectively. The estimated piecewise constant job and employment duration models show that changes in the durations of the first job and employment - measured as the sum of multiple consecutive jobs - are observed in periods of labour market reforms. However, the existence of a trade-off is not confirmed by the results. In Germany, men have experienced an increase in employment stability over time, mated with somewhat longer job durations, while women have not benefitted from an increase in employment durations as a compensation for the marked decrease in their first job durations. In Italy, employment stability of the new entrants of both sexes has not improved after the reforms. The reduction in the duration of the first job has not been counterbalanced by an increase in the opportunity to find rapidly another job. These results suggest that the objective of increasing job opportunities by means of labour market deregulation has not been fully achieved

Doing Well in Reforming the Labour Market? Recent Trends in Job Stability and Wages in Germany

The German employment miracle, with a weak decline in employment and low unemployment during the great recession, seems to be a good example for a successful labour market reform. Nevertheless, there are concerns about rising inequality in the labour market. In this paper we analyze the quality of newly started jobs between 1998 and 2010 using a huge administrative data set which allows us to look at job durations and earnings for different groups of workers. We discuss changes in the distributions of job durations and earnings over time, and present microeconometric models controlling for individual, firm and regional characteristics. Our results show a fairly constant level of overall job stability, but decreasing real wages and rising wage dispersion over time