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Table 3 Effects of selected labor market programs

From: The German labor market after the Great Recession: successful reforms and future challenges

Study

Instrument/Program

Inflows and Observation Period

Main results

Bernhard et al. (2008a)

- Targeted wage subsidies paid to employers for a limited period

- Feb-Apr 2005

- Large and significant positive effects of nearly 40 percentage points

 

- 20 months

  

Bernhard and Kruppe (2012)

- Further vocational training

- Feb-Apr 2005

- Share of unemployment benefit II recipients decreases; employment rate in the intermediate term increases by up to 13%-points

 

- 30 months

  

Bernhard and Wolff (2008)

- Contracting out placement services for UB-II recipients

- Feb-Apr 2005

- Locking-in effects in first months after start

  

- 25 months

- Employment rates are raised by about two %-points for East German participants and West German male participants

Caliendo and Künn (2011)

- Bridging Allowance (formerly §57 SC III)

- Jul-Sep 2003

- High employment and modest income effects for participants; considerable additional job creation for bridging allowance (small job creation for start-up subsidy)

 

- Start-Up Subsidy (formerly §421 SC III)

- 56 months

 

Hohmeyer (2009)

- Work opportunities/“1-Euro-Jobs”

- Feb-Apr 2005

- Small positive employment effects 28 months after program start for women in East and West Germany as well as men in West Germany

 

- Paid in addition to UB II

- 28 months

 

Rinne et al. (2011)

- Different program types of further vocational training

- Year 2002

- All program types have on average a significant positive impact on employment prospects 24 months after program entry

  

- 28 months

 

Schneider (2008)

- Benefit sanctions for UB II recipients not complying with requirements supposed to fasten reintegration in labor market

- Jan 2005

- No significant effect on reservation wage of UB II recipients

  

- 11 months

 
  1. Note: All studies use propensity score matching methods based on administrative data.