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Evaluation of Labor Market Programs

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This page is maintained by Patrick Arni.

Modern welfare states spend substantial amounts on labor market policies and education programs aimed at promoting employment and wages. For successful policy development, monitoring of program outcomes is essential. In an era of limited funds, this program area meets the demands by decision makers and taxpayers for clean empirical evidence on the effectiveness of labor market-related policies. Which participants in a program actually benefit from it? And how does the initiative affect those who do not participate? How stable are the effects of the policy in the longer run? Econometric evaluation gives answers to these types of questions. IZA experts apply a broad range of econometric evaluation approaches – from designs which are suitable for situations without controlled policy experiments up to designs which implement randomized field experiments. Simulation approaches based on empirical regularities in individual behavior enable evaluation even before implementation of new programs. Using these techniques to carry out rigorous cost-benefit analyses, IZA provides independent advice to policymakers – pursuing the objective to improve the effectiveness of policy instruments and to contribute to a more targeted allocation of financial resources.

For general information about this program area, please contact: evaluation@iza.org

Core members of this program area:
Dr. Patrick Arni, Research Associate
Karina Doorley, Ph.D., Research Associate
Dr. Anne C. Gielen, Senior Research Associate
Dr. Steffen Künn, Research Associate
Robert Mahlstedt, Resident Research Affiliate
Dr. Ulf Rinne, Deputy Director of Research and Personal Advisor to the Director
Sebastian Siegloch, Research Associate

Affiliated members of this program area:
Prof. Olivier Bargain, Ph.D., Visiting Research Fellow
Prof. Dr. Marco Caliendo, Program Director and Visiting Research Fellow
Prof. Amelie F. Constant, Ph.D., Program Director and Visiting Research Fellow
Philipp Doerrenberg, Resident Research Affiliate
Dr. Mathias Dolls, Research Fellow
Vanessa Dräger, Resident Research Affiliate
Dr. Werner Eichhorst, Deputy Director of Labor Policy
Jens Hogenacker, Resident Research Affiliate
Prof. Peter J. Kuhn, Ph.D., Visiting Research Fellow
Prof. Hartmut Lehmann, Ph.D., Program Director and Visiting Research Fellow
Max Loeffler, Resident Research Affiliate
Dr. Andreas Peichl, Senior Research Associate
Dr. Nico Pestel, Research Associate
Prof. Dr. Jo Ritzen, Senior Advisor Policy
Núria Rodríguez-Planas, Ph.D., Visiting Research Fellow
Ricarda Schmidl, Resident Research Affiliate
Eric Sommer, Resident Research Affiliate

Please click here to see the full list of IZA Research Fellows affiliated with this program area.

   
Marco Caliendo,
Program Director, University of Potsdam

Tel.: +49-228-38 94 512
Email: caliendo@uni-potsdam.de
 
Gerard J. van den Berg,
Program Director, University of Mannheim

Email: gjvdberg@xs4all.nl
 
Patrick Arni,
Deputy Program Director, IZA

Tel.: +49-228-38 94 221
Email: arni@iza.org

 

Highlights
Events
Projects
Recent Discussion Papers
Selected Publications
 

Highlights

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Events

Date Title Location Deadline
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Projects

Evaluation of Business Coaching for Start-ups



Funded by: Federal Ministry of Economics and Technology, Federal Ministry of Labor and Social Affairs
Project Start: 2010/10/13
Project leader(s): Marco Caliendo (University of Potsdam and IZA)
Participants: Steffen Künn (IZA),  Christian Loersch (University of Potsdam and IZA)
Short Description: During the first five years after start-up, entrepreneurs in Germany can receive public funding for external business coaching (“Gründercoaching Deutschland”). The program was introduced in October 1, 2007 and one year later extended by a variant especially designed for start-ups out of unemployment (“Gründercoaching Deutschland – Gründungen aus Arbeitslosigkeit”). For the latter program the coverage rate of the coaching costs is higher and the period of eligibility is restricted to one year after start-up. Both programs aim to increase the sustainability of business start-ups and have become an important part of entrepreneurial support programs in Germany. Together with Prof. Dr. Kritikos (DIW Berlin) and the Institute for Applied Social Science (infas), IZA and the University of Potsdam evaluate the effectiveness and efficiency of both instruments. Based on the evaluation results, the project team will also give policy advice with respect to the prospective organization of the programs' set up. After first results have been submitted to the Ministry in June 2011, the final report including long-run results will be due in June 2013.
Last updated: 2012/09/10


Evaluation of the New Start-up Subsidy



Funded by: Institute for Employment Research (IAB), Nuremberg
Project Start: 2009/12/18
Project leader(s): Marco Caliendo (University of Potsdam and IZA)
Participants: Jens Hogenacker (IZA),  Steffen Künn (IZA)
Short Description: In 2006 the German government introduced the “new start-up subsidy” (“Gründungszuschuss”) to support unemployed individuals to become self-employed. The implementation of this program replaced two earlier programs, i.e., the bridging allowance (“Überbrückungsgeld”) and the start-up subsidy (“Existenzgründungszuschuss”). Evaluations of the latter two programs within the Hartz-Evaluation and the IZA research project “Long-Run Effects of Start-Up Subsidies” (see below) showed that they were quite successful. The current project evaluates the new start-up subsidy and is therefore a consistent extension of the research on start-up subsidies in Germany. We adopt a holistic evaluation approach, comparing the labor market outcomes of subsidized business founders and a control group of other unemployed individuals on the one hand, and the performance of subsidized businesses to unsubsidized start-ups on the other. Furthermore, we survey supported entrepreneurs right after they are starting their business, allowing an assessment of the dynamic process during the founding period. Long-run results are expected to be available in 2013.
Publications:
Marco Caliendo, Jens Hogenacker, Steffen Künn, Frank Wießner "Alte Idee, neues Programm: Der Gründungszuschuss als Nachfolger von Überbrückungsgeld und Ich-AG", IZA DP No. 6035, October 2011, (published in: Zeitschrift für ArbeitsmarktForschung / Journal for Labour Market Research, 2012, 45 (2), 99-123) [view abstract]
Last updated: 2012/09/10


Job Search Behavior of the Unemployed



Funded by: German Research Foundation (DFG)
Project Start: 2008/10/01
Project leader(s): Marco Caliendo (University of Potsdam and IZA),  Arne Uhlendorff (University of Mannheim and IZA)
Participants: Ricarda Schmidl (IZA)
Short Description: Analyzing the determinants of differential transition patterns from unemployment to employment for individuals with perceivably similar labor market characteristics is an important subject of labor market research. This research project aims to fill the gap in the literature on this topic, making use of a novel dataset, the IZA Evaluation Dataset. This dataset consists of a representative inflow sample into unemployment, and contains detailed information on usually unknown individual characteristics as well as job search choices of the unemployed. This allows us to analyze the determinants of reservation wages and the type and intensity of job search as well as their impact on unemployment duration. In particular, we investigate the role of individual characteristics (as personality traits, social networks) in the job search process, as well as the impact of active labor market policies. Our results so far indicate that differences in the potential duration of unemployment benefit receipt as well as differences in personality traits and in subjective expectations about participation probabilities in active labor market policy programs lead to heterogeneity in the search behavior and in the transition probabilities into employment.
Publications:
Gerard J. van den Berg, Annette Bergemann, Marco Caliendo "The Effect of Active Labor Market Programs on Not-Yet Treated Unemployed Individuals", IZA DP No. 3825, November 2008, (published in: Journal of the European Economic Association, 2009, 7(2-3), 606-616) [view abstract]
Marco Caliendo, Deborah A. Cobb-Clark, Arne Uhlendorff "Locus of Control and Job Search Strategies", IZA DP No. 4750, February 2010 [view abstract]
Marco Caliendo, Konstantinos Tatsiramos, Arne Uhlendorff "Benefit Duration, Unemployment Duration and Job Match Quality: A Regression-Discontinuity Approach", IZA DP No. 4670, December 2009, (published in: Journal of Applied Econometrics, 2013, 28 (4), 604-627) [view abstract]
Marco Caliendo, Ricarda Schmidl, Arne Uhlendorff "Social Networks, Job Search Methods and Reservation Wages: Evidence for Germany", IZA DP No. 5165, September 2010, (published in: International Journal of Manpower, 2011, 32 (7), 796 - 824) [view abstract]
Marco Caliendo, Arne Uhlendorff "Determinanten des Suchverhaltens von Arbeitslosen: Ausgewählte Erkenntnisse basierend auf dem IZA Evaluationsdatensatz", IZA DP No. 5379, December 2010, (published in: Zeitschrift für ArbeitsmarktForschung / Journal for Labour Market Research, 2011, 44 (1-2), 119-125) [view abstract]
Last updated: 2011/05/27


Long-Run Effects of Start-Up Subsidies



Funded by: Institute for Employment Research (IAB), Nuremberg
Project Start: 2008/03/01
Project leader(s): Marco Caliendo (University of Potsdam and IZA)
Participants: Steffen Künn (IZA)
Short Description: During the 2006 evaluations of the “Hartz reforms”, the effects of two kinds of grants for business foundation (start-up subsidy and bridging allowance) were examined over a three-year-period after business start-up. In this project we analyze the long-term effects of both instruments, in order to recommend policy-relevant strategies for the further reform of active labor market policy in Germany. Persons were interviewed five years after entering the programs in order to find out whether they are still successful in the market. Five years after start-up, the results show that a significant share of former unemployed individuals who participated in the programs are still self-employed; compared to a control group of other unemployed individuals both programs successfully integrated participants into the labor market.
Publications:
Marco Caliendo, Steffen Künn, Frank Wießner "Die Nachhaltigkeit von geförderten Existenzgründungen aus Arbeitslosigkeit: Eine Bilanz nach fünf Jahren", IZA DP No. 3880, December 2008, (published in: Zeitschrift für ArbeitsmarktForschung / Journal for Labour Market Research, 2010, 42(4), 269-291) [view abstract]
Marco Caliendo, Steffen Künn "Start-Up Subsidies for the Unemployed: Long-Term Evidence and Effect Heterogeneity", IZA DP No. 4790, February 2010, (published in: Journal of Public Economics, 2011, 95 (3-4), 311–331) [view abstract]
Marco Caliendo, Steffen Künn "Getting Back into the Labor Market: The Effects of Start-Up Subsidies for Unemployed Females", IZA DP No. 6830, August 2012 [view abstract]
Last updated: 2012/09/10
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Recent Discussion Papers

No. Author(s) Title Date PDF Link to Abstract
7408 Yoon Y. Cho, Davie Kalomba, Ahmed Mushfiq Mobarak, Victor Orozco Gender Differences in the Effects of Vocational Training: Constraints on Women and Drop-Out Behavior May 2013 Abstract
7403 Gerhard Krug, Gesine Stephan Is the Contracting-Out of Intensive Placement Services More Effective than Provision by the PES? Evidence from a Randomized Field Experiment May 2013 Abstract
7394 Ana C. Dammert, Jose C. Galdo Program Quality and Treatment Completion for Youth Training Programs
(published in: Economics Letters, 2013, 119 (3), 243-246)
May 2013 Abstract
7381 David L. Sjoquist, John V. Winters State Merit-Aid Programs and College Major: A Focus on STEM May 2013 Abstract
7369 Nicole B. Simpson Families, Taxes and the Welfare System April 2013 Abstract
7365 Nattavudh Powdthavee, Warn N. Lekfuangfu, Mark Wooden The Marginal Income Effect of Education on Happiness: Estimating the Direct and Indirect Effects of Compulsory Schooling on Well-Being in Australia April 2013 Abstract
7359 Daniel L. Millimet, Ian K. McDonough Dynamic Panel Data Models with Irregular Spacing: With Applications to Early Childhood Development April 2013 Abstract
7347 Henry Farber, Robert G. Valletta Do Extended Unemployment Benefits Lengthen Unemployment Spells? Evidence from Recent Cycles in the U.S. Labor Market April 2013 Abstract
7337 Andreas Landmann, Markus Frölich Can Microinsurance Help Prevent Child Labor? An Impact Evaluation from Pakistan April 2013 Abstract
7333 Yoon Y. Cho, Maddalena Honorati Entrepreneurship Programs in Developing Countries: A Meta Regression Analysis April 2013 Abstract
7330 Lukas Inderbitzin, Stefan Staubli, Josef Zweimüller Extended Unemployment Benefits and Early Retirement: Program Complementarity and Program Substitution April 2013 Abstract
7315 Tymon Sloczynski Population Average Gender Effects March 2013 Abstract
7298 Aaron K. Chatterji, Kenneth Y. Chay, Robert W. Fairlie The Impact of City Contracting Set-Asides on Black Self-Employment and Employment March 2013 Abstract
7296 Heather Antecol, Ozkan Eren, Serkan Ozbeklik The Effect of Teach for America on the Distribution of Student Achievement in Primary School: Evidence from a Randomized Experiment March 2013 Abstract
7295 Brahim Boudarbat, Lee Grenon Sample Attrition in the Canadian Survey of Labor and Income Dynamics March 2013 Abstract
7291 Alexander Hijzen, Sébastien Martin The Role of Short-Time Work Schemes during the Global Financial Crisis and Early Recovery: A Cross-Country Analysis
(forthcoming in: IZA Journal of Labor Policy)
March 2013 Abstract
7283 Nicholas-James Clavet, Jean-Yves Duclos, Guy Lacroix Fighting Poverty: Assessing the Effect of Guaranteed Minimum Income Proposals in Québec
(fortcoming in: Canadian Public Policy)
March 2013 Abstract
7269 Andries de Grip, Didier Fouarge, Raymond Montizaan How Sensitive Are Individual Retirement Expectations to Raising the Retirement Age?
(forthcoming in: De Economist)
March 2013 Abstract
7268 Abel Brodeur, Mathias Lé, Marc Sangnier, Yanos Zylberberg Star Wars: The Empirics Strike Back March 2013 Abstract
7266 Bart Cockx, Corinna Ghirelli, Bruno Van der Linden Monitoring Job Search Effort with Hyperbolic Time Preferences and Non-Compliance: A Welfare Analysis March 2013 Abstract
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Selected Publications


Journal Articles:

Gerard J. van den Berg, Bas van der Klaauw "Combining Micro and Macro Unemployment Duration Data", in: Journal of Econometrics, 2001, 102 (2), 271-309.
Zhong Zhao "Using Matching to Estimate Treatment Effects: Data Requirement, Matching Metrics and Monte Carlo Evidence", in: The Review of Economics and Statistics, 2004, 86 (1), 91-107.
Jaap H. Abbring, Gerard J. van den Berg "Analyzing the Effect of Dynamically Assigned Treatments Using Duration Models, Binary Treatment Models, and Panel Data Models", in: Empirical Economics, 2004, 29 (1), 5-20.
Zvi Eckstein, Gerard J. van den Berg "Empirical Labor Search: A Survey", in: Journal of Econometrics, 2007, 136 (2), 531-564.
Marco Caliendo, Sabine Kopeinig "Some Practical Guidance for the Implementation of Propensity Score Matching", in: Journal of Economic Surveys, 2008, 22 (1), 31-72.
Gerard van den Berg, Annette Bergemann, Marco Caliendo "The Effect of Active Labor Market Programs on Not-Yet Treated Unemployed Individuals", in: Journal of the European Economic Association P&P, 2009, 7(2-3), 606-616.
Marco Caliendo, Steffen Künn "Start-Up Subsidies for the Unemployed: Long-Term Evidence and Effect Heterogeneity", in: Journal of Public Economics,, 2011, 95(3-4), 311-331.
Patrick Arni, Rafael Lalive, Jan C. van Ours "How Effective Are Unemployment Benefit Sanctions? Looking Beyond Unemployment Exit", in: Journal of Applied Econometrics, 2012, forthcoming.
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