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IFAU - Institute for Evaluation of Labour Market and Education Policy Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2011:4:
The threat effect of participation in active labor market programs on job search behavior of migrants in Germany

Annette Bergemann (), Marco Caliendo, Gerard J. van den Berg and 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: Immigrants; policy evaluation; reservation wage; search effort; expectations; unemploy­ment duration; program evaluation; active labor market policy.; (follow links to similar papers)

JEL-Codes: C21; D83; D84; J61; J64; (follow links to similar papers)

22 pages, February 7, 2011

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This paper is published as:
Bergemann, Annette, Marco Caliendo, Gerard J. van den Berg and Klaus F. Zimmermann, (2011), 'The threat effect of participation in active labor market programs on job search behavior of migrants in Germany', International Journal of Manpower, Vol. 32, No. 7, pages 777-795



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