Do public works programs work in Eastern Germany?

verfasst von: Florian Kraus, Patrick A. Puhani, Viktor Steiner
Abstract: We analyze the effectiveness of public works programs (PWP, Arbeits-beschaffungsmaßnahmen) in Eastern Germany as measured by their effects on individual future re-employment probabilities in regular jobs. These are estimated by discrete hazard rate models on the basis of individual-level panel data. We account for unobserved individual heterogeneity in both the PWP participation and in the outcome equations. We also test for selection on unobservables. We find that public works programs seem to have no special targeting focus on disadvantaged groups in the labor market and that participants are, on average, worse off concerning their re-employment prospects in regular jobs than unemployed people who do not join such a program. A possible explanation for this result is that PWP participants search less intensively for a regular job while on such a program than unemployed non-participants.
Externe Organisation(en): Technische Universität München (TUM)
Zentrum für Europäische Wirtschaftsforschung GmbH (ZEW) Mannheim
Typ: Beitrag in Buch/Sammelwerk
Seiten: 275-313
Anzahl der Seiten: 39
Publikationsdatum: 2000
Publikationsstatus: Veröffentlicht
Peer-reviewed: Ja
ASJC Scopus Sachgebiete: Arbeitgeber-Arbeitnehmer-Beziehungen, Volkswirtschaftslehre und Ökonometrie, Politikwissenschaften und internationale Beziehungen

BibTeX

@inbook{c8c1e95ca16f48df848efad744ad344b,
title = "Do public works programs work in Eastern Germany?",
abstract = "We analyze the effectiveness of public works programs (PWP, Arbeits-beschaffungsma{\ss}nahmen) in Eastern Germany as measured by their effects on individual future re-employment probabilities in regular jobs. These are estimated by discrete hazard rate models on the basis of individual-level panel data. We account for unobserved individual heterogeneity in both the PWP participation and in the outcome equations. We also test for selection on unobservables. We find that public works programs seem to have no special targeting focus on disadvantaged groups in the labor market and that participants are, on average, worse off concerning their re-employment prospects in regular jobs than unemployed people who do not join such a program. A possible explanation for this result is that PWP participants search less intensively for a regular job while on such a program than unemployed non-participants.",
author = "Florian Kraus and Puhani, {Patrick A.} and Viktor Steiner",
note = "Funding Information: Financial support from the German Science Foundation (DFG) under the project {\textquoteleft}Arbeitsmarktdynamik im ostdeutschen Transformationsprozess{\textquoteright} is gratefully acknowledged. is gratefully acknowledged. We thank two anonymous referees as well as Herbert S. Buscher, Hermann Buslei, Fran{\c c}ois Laisney, Friedhelm Pfeiffer, Elke Wolf, ZEW, Mannheim, and Martin Eichler and Michael Lechner, SIAW, University of Sankt Gallen, for helpful comments. We also thank Avo Sch{\"o}nbohm and Anja Triebe for excellent research assistance. Any remaining errors are our own responsibility.",
year = "2000",
language = "English",
isbn = "0762306939",
series = "Research in Labor Economics",
publisher = "JAI Press",
pages = "275--313",
booktitle = "Research in Labor Economics",
address = "United States",
}