Working Paper: CEPR ID: DP8295
Authors: Annette Bergemann; Marco Caliendo; Gerard J. van den Berg; Klaus F. Zimmermann
Abstract: Labor market programs may affect unemployed individuals? behavior before they enroll. Such ex ante effects may differ according to ethnic origin. We apply a novel method that relates self-reported perceived treatment rates and job search behavioral outcomes, such as the reservation wage or search intensity, to each other. We compare German native workers with migrants with a Turkish origin or Central and Eastern European (including Russian) background. Job search theory is used to derive theoretical predictions. We examine the omnibus ex ante effect of the German ALMP system, using the novel IZA Evaluation Data Set, which includes self-reported assessments of the variables of interest as well as an unusually detailed amount of information on behavior, attitudes and past outcomes. We find that the ex ante threat effect on the reservation wage and search effort varies considerably among the groups considered.
Keywords: active labor market policy; expectations; immigrants; policy evaluation; program evaluation; reservation wage; search effort; unemployment duration
JEL Codes: C21; D83; D84; J61; J64
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Participation in ALMPs (J68) | Reservation Wage (J31) |
| Participation in ALMPs (J68) | Search Effort (G14) |
| Expected Participation in ALMPs (J68) | Reservation Wage (J31) |
| Expected Participation in ALMPs (J68) | Search Effort (G14) |
| Expected Participation in ALMPs (J68) | Search Effort (Turkish migrants) (F22) |