The Evaluation of Immigration Policies

This chapter summarizes the literature on the evaluation of immigration policies. It brings together two strands of the literature dealing with the evaluation of labor market programs and with the economic integration of immigrants. Next to immigrant selection and settlement policies, there are four types of interventions that aim at improving the economic and social outcomes of immigrants: a) introduction programs, b) language training, c) labor market programs, and d) anti-discrimination policies. The chapter discusses problems associated with the evaluation of such programs, presents methodological approaches to circumvent these problems, and surveys empirical results and findings. It concludes with lessons from previous research and identifies avenues for future research.migration, program evaluation, immigrant selection, settlement policy, introduction programs, discrimination, active labor market policy, language training, integration

Report No. 8: Evaluation of the Active Labor Market Program "Beautiful Serbia"

Final report on behalf of the United Nations Development Program (UNDP) Serbia and Montenegro, Bonn 2006 (84 pages)

Another Economic Miracle? The German Labor Market and the Great Recession

The mild response of the German labor market to the worst global recession in post-war history appears as an economic miracle. In response to the crisis, Germany has shown to be a strong case of internal flexibility. We argue that important factors that have contributed to this development include the strong position of the German economy due to recent labor market reforms, the nature of the crisis affecting mainly export-oriented companies in Germany, the extension of short-time work, the behavior of social partners, and automatic stabilizers. Among these factors, we emphasize the key role of the interaction between short-time work and long-term shortages of skilled workers in sectors and regions that were particularly affected by the crisis. Although the German experience is in stark contrast to that in the United States, we identify and discuss three challenges that will be at the center of debate on both sides of the Atlantic in the future.economic crisis, Germany, short-time work, unemployment, labor market institutions, internal flexibility

Poor Marks for Germany's Isolationist Policy

The free movement of workers within the European Union does not place a burden on labor markets or social services. This is the conclusion of a recent study on the development and effects of east-to-west migration in the wake of EU enlargement in 2004 and 2007. In this light, Germany's restrictive immigration policy received poor marks. Recent measures-such as Germany's labor migration regulation law, which is intended to ease the immigration of highly qualified foreigners-are certainly steps in the right direction. However, they still do too little to enable Germany to exploit the opportunities offered by immigration.EU enlargement, International migration

Too Bad to Benefit?: Effect Heterogeneity of Public Training Programs

This study analyzes the treatment effects of public training programs for the unemployed in Germany. Based on propensity score matching methods we extend the picture that has been sketched in previous studies by estimating treatment effects of medium-term programs for different sub-groups with respect to vocational education and age. Our results indicate that program participation has a positive impact on employment probabilities for all sub-groups. Participants also seem to find more often higher paid jobs than non-participants. However, we find only little evidence for the presence of heterogeneous treatment effects, and the magnitude of the differences is quite small. Our results are thus - at least in part - conflicting with the strategy to increasingly provide training to individuals with better employment prospects.Program Evaluation, Active Labor Market Policy, Effect Heterogeneity, Public Training Programs, Matching

How Policy Changes Affect Shareholder Wealth: The Case of the Fukushima Daiichi Nuclear Disaster

This paper analyzes how policy changes affect shareholder wealth in the context of environmental regulation. We exploit the unique and unexpected German reaction to the Fukushima Daiichi nuclear disaster, which involved the immediate shutdown of almost half of Germany’s nuclear reactors while safety checks were carried out, and a three-month moratorium on extending the lives of others. Using the event study methodology, our findings indicate a wealth transfer from nuclear energy companies to renewable energies companies in Germany. We moreover find that the joint market capitalization of these firms has decreased, but the amount of this combined decrease is small. Substantial heterogeneity in the shareholder wealth effects across European countries can be linked to different nuclear energy policies. The shareholder wealth of nuclear and conventional energy companies in the United States has been unaffected.electric power, nuclear power, green economy, earthquake, tsunami, event study, environment

Vouchers and Caseworkers in Public Training Programs: Evidence from the Hartz Reform in Germany

This paper studies the role of training vouchers and caseworkers in public training programs. Using a rich administrative data set, we apply matching and regression methods to measure the effect of the Hartz reform in Germany, which introduced training vouchers and imposed more selective criteria on participants. Besides estimating the overall reform effect, we isolate the effect induced by changes in the composition of program participants due to stricter selection by the caseworkers (selection effect) from the effect based on the introduction of vouchers (voucher effect). Analyzing the most important type of training in Germany, we find a slightly positive impact of the reform. Our decomposition results suggest that the selection effect is − if at all − slightly negative, and that the voucher effect increased both, the employment probability and earnings of the participants.active labor market policy, program evaluation, matching, voucher, caseworker, training, Hartz reform

Short-Time Work: The German Answer to the Great Recession

Short-time work was the "German answer" to the economic crisis. The number of short-time workers strongly increased in the recession and peaked at more than 1.5 million. Without the extensive use of short-time work, unemployment would have risen by approximately twice as much as it actually did. Short-time work has certainly contributed to the mild response of the German labor market to the crisis, but this is likely due to the country-specific context. Although the crisis has been overcome and employment is strongly expanding, modified regulations governing short-time work are still in place. This leads to undesired side effects.labor market policy, partially unemployed workers, short-time work compensation, economic crisis

Ethnicity, Job Search and Labor Market Reintegration of the Unemployed

This paper is based on recently collected and rich survey data of a representative sample of entrants into unemployment in Germany. Our data include a large number of migration variables, allowing us to adapt a recently developed concept of ethnic identity: the ethnosizer. To shed further light on the native-migrant differences in economic outcomes, we investigate the labor market reintegration, patterns of job search, and reservation wages across unemployed migrants and natives in Germany. Our results indicate that separated migrants have a relatively slow reintegration into the labor market. We explain this finding by arguing that this group exerts a relatively low search effort and that it has reservation wages which are moderate, yet still above the level which would imply similar employment probabilities as other groups of migrants.migration, ethnicity, ethnic identity, ethnosizer, unemployment, job search, reservation wages

Reservation Wages of First and Second Generation Migrants

This paper analyzes the reservation wages of first and second generation migrants. Based on recently collected and rich survey data of a representative inflow sample into unemployment in Germany, we empirically test the hypothesis that reservation wages increase from first to second generation migrants. Two extensions of the basic job search model, namely an unknown wage offer distribution and different reference standards, provide theoretical justifications for this conjecture. In both extensions, changing frames of reference are identified as a channel through which the phenomenon of increasing reservation wages may arise. In as far as language skills or self-evaluated returns to characteristics reflect a person's frames of reference, we find empirical support for this mechanism to be present.Migration, Ethnic Identity, Ethnosizer, Germany, Unemployment, Job Search, Reservation Wages