Short-term training programs for immigrants in the German welfare system: do effects differ from natives and why?

Research output: Contribution to journalArticleResearchpeer review

Authors

  • Stephan L. Thomsen
  • Thomas Walter
  • Alisher Aldashev

Research Organisations

External Research Organisations

  • Centre for European Economic Research (ZEW)
  • Kazakh-British Technical University (KBTU)
  • Lower Saxony Institute of Economic Research (NIW)
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Details

Original languageEnglish
Article number24
JournalIZA Journal of Migration
Volume2
Issue number1
Publication statusPublished - 16 Dec 2013

Abstract

We evaluate the individual employment effects of four types of short-term training for immigrants and natives in the German welfare system and identify differences in the effects determined by unobservable factors. Based on comprehensive and unique administrative data, we apply propensity score matching in a dynamic setting to estimate the treatment effects and suggest the identification of unexplained effect differences between groups. The results show a mixed picture: two types of training increase the employment chances of immigrants, whereas the other two are rather ineffective. Effect differences between immigrants and natives predominantly result from socio-demographic composition. JEL codes: I38, C14, J61

Keywords

    Evaluation, Immigrant fixed effect, Immigrants, Short-term training, Welfare

ASJC Scopus subject areas

Cite this

Short-term training programs for immigrants in the German welfare system: do effects differ from natives and why? / Thomsen, Stephan L.; Walter, Thomas; Aldashev, Alisher.
In: IZA Journal of Migration, Vol. 2, No. 1, 24, 16.12.2013.

Research output: Contribution to journalArticleResearchpeer review

Thomsen SL, Walter T, Aldashev A. Short-term training programs for immigrants in the German welfare system: do effects differ from natives and why? IZA Journal of Migration. 2013 Dec 16;2(1):24. doi: 10.1186/2193-9039-2-24
Thomsen, Stephan L. ; Walter, Thomas ; Aldashev, Alisher. / Short-term training programs for immigrants in the German welfare system: do effects differ from natives and why?. In: IZA Journal of Migration. 2013 ; Vol. 2, No. 1.
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abstract = "We evaluate the individual employment effects of four types of short-term training for immigrants and natives in the German welfare system and identify differences in the effects determined by unobservable factors. Based on comprehensive and unique administrative data, we apply propensity score matching in a dynamic setting to estimate the treatment effects and suggest the identification of unexplained effect differences between groups. The results show a mixed picture: two types of training increase the employment chances of immigrants, whereas the other two are rather ineffective. Effect differences between immigrants and natives predominantly result from socio-demographic composition. JEL codes: I38, C14, J61",
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note = "Funding information: Financial support during the programs is provided by the Federal Employment Agency (FEA) and covers course costs, examination fees, and travel grants as well as child care. In addition, participants receive welfare payments. All short-term training programs are intended to qualify welfare recipients for employment. There is no intention of a threat effect, i.e. the assigned participants quit welfare in order to avoid participation. Assignment to programs depends on the decision of the caseworker, who interviews and advises the welfare recipient about requirements for and obstacles to employment. If this assessment reveals the need for participation in a short-term training program, the caseworker decides about the type offered, i.e. whether the welfare recipient should be trained in a single or a combined program. In case of the latter, the number and the sequence of modules is defined ex ante. (Therefore, they can be assumed to constitute a distinct type of program). We thank Amelie Constant, Corrado Giulietti, and an anonymous referee for helpful comments. Financial support from the project Effects of Book II of the German Social Code on Persons with Migration Background commissioned by the Federal Ministry of Labor and Social Affairs (BMAS) is gratefully acknowledged. Stephan Thomsen thanks the Stifterverband f{\"u}r die Deutsche Wissenschaft (Claussen-Simon-Stiftung) for financial support. The paper has benefited from discussions at the ZEW Workshop on Evaluation of Policies Fighting Social Exclusion in Mannheim, 2010, the Conference on Migration and Migration Policy at University of Maastricht, 2010, the Conference of the Canadian Economics Association in Quebec City, 2010, the Conference of the European Society for Population Economics in Essen, 2010, the Conference of the Swiss Society of Economics and Statistics in Fribourg, 2010, the Trinity Immigration Initiative International Conference at Trinity College Dublin, 2010, the Econometric Society World Congress in Shanghai, 2010, the Conference of the European Economic Association in Glasgow, 2010, and the Conference of the German Economic Association in Kiel, 2010. We wish to thank Moritz Hennig and Ann-Kathrin K{\"o}{\ss}ler for helpful research assistance.",
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