Skip to main content

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.