Do Job Creation Schemes Improve the Social Integration and Well-Being of the Long-Term Unemployed?

Иванов, Б. Н.; Pfeiffer, Friedhelm; Pohlan, Laura

doi:10.2139/ssrn.3486130

Cited by 3 publications

(7 citation statements)

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“…6 (Wulfgramm, 2011a;2011b;Crost, 2016;Knabe et al, 2016, Ivanov, Pfeiffer andPohlan, 2020). 7 Several studies support these results (Deaton, 2008;Stevenson and Wolfers, 2008;Easterlin, Angelescu and Zweig, 2011;Howarth and Kennedy, 2016 This result indicates that active labor market policies have proven to be effective tools to reduce the unemployment rate which would take the form of gains in terms of well-being 8 by strengthening resilience to adversity (in this case, the 2008 economic crisis) (Hur, 2019;Morgan and O'Connor, 2019).…”

Section: Robustness Checkmentioning

confidence: 93%

“…Indeed, empirical studies indicate that ALMPs have mixed results on the well-being (Coutts, Stuckler and Cann, 2014). The idea that ALMPs can have positive effects on the well-being can be traced back to essential to the works of (Donovan et al, 1986;Korpi, 1997;Creed, Machin and Hicks, 1999;Strandh, 2001;Andersen, 2008;Wulfgramm, 2011a;2011b;Krause, 2013;Sage, 2015a,b;Carter and Whitworth, 2017;Rose, 2019;Ivanov, Pfeiffer and Pohlan, 2020;Puig-Barrachina et al, 2020). At the national level, several studies have been developed showing a positive effect of ALMP on the well-being; Vinokur et al (2000) and Vuori et al (2002) in USA and Finland, Creed, Bloxsome and Johnston (2001) in Australia, Behle (2005) and Wulfgramm (2011a;2011b) in Germany, Hagquist and Starrin (1996), Korpi (1997) and Strandh (2001) in Sweden, Anderson (2008) and Bonin and Rinne (2014) in Serbia.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Job search assistance type of ALMP has shown a positive effect with no controversy. Furthermore, another recent study conducted by (Ivanov, Pfeiffer and Pohlan, 2020) using a linked survey and administrative data for participants and a group of matched non-participants, the authors analyzed the effects of a German Job Creation Program (JCS) on the social integration and well-being of the unemployed and found significant positive effects of being employed. Audhoe et al (2010) conducted a meta-analysis of 29 studies covering the period from 1990 to 2008 seeking to validate the link between participation on ALMPs and well-being.…”

Section: Literature Reviewmentioning

confidence: 99%

“…(Rose, 2019). (Caliendo, 2009;Caliendo and Kritikos, 2010;Crost, 2016;Sage, 2018;Ivanov et al, 2020;Puig-Barrachina et al, 2020). (Caliendo, 2009;Caliendo and Kritikos, 2010;Korpi, 1997;Rose, 2019;Ivanov et al, 2020;Puig-Barrachina et al, 2020).…”

Section: Employment Assistanceunclassified

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Do Active Labor Market Policies Increase the Subjective Well-being of the Unemployed? Evidence from OECD Countries

Sahnoun¹,

Abdennadher²

2021

ekoncas

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The employment policies, whether preventive (Active) or curative (Passive), arouse the interest of policy makers in the OECD countries. These policies are mainly concerned with the economy of labor market, but they are not detachable from the reference to the health economy in its social and psychological dimension. Using different estimates (OLS, FE, GMM system), we found evidence that Active Labor Market Policies (ALMPs) have the strongest impact on the subjective well-being of the unemployed. Examination of the different types of ALMP reveals heterogeneity; programs of incentive employment, start-up incentives and training have been most effective in improving the well-being of the unemployed compared to those of direct job creation and supported employment and rehabilitation. Then, we propose some policy recommendations by emphasizing the disposition of the subjective well-being approach in the design, implementation and evaluation of ALMPs.

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Section: Robustness Checkmentioning

confidence: 93%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Employment Assistanceunclassified

See 2 more Smart Citations

Do Active Labor Market Policies Increase the Subjective Well-being of the Unemployed? Evidence from OECD Countries

Sahnoun¹,

Abdennadher²

2021

ekoncas

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“…With regard to the former, governments may either subsidize firms to offer jobs (wage subsidy) or workers to supply labor (in-work benefit). Ivanov et al (2020) examine a specific German wage subsidy aimed at workers who have been long-term unemployed for four years and exhibit further characteristics that limit their job prospects, such as health impairments and/or minor children. Program participation, i.e.…”

Section: Labor Market Policymentioning

confidence: 99%

Happiness, Work, and Identity

Hetschko

Knabe

Schoeb

2021

Handbook of Labor, Human Resources and Population Economics

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This chapter introduces identity utility to the study of (un)employment and (un)happiness. The concept is described in terms of an augmented utility function, the implications of which are assessed in light of the empirical literature on unemployment and well-being. Studies on unemployed persons' affective and cognitive well-being allow assessing the importance of the loss of identity utility relative to other nonmonetary consequences of joblessness, such as fewer social contacts and a lack of a structure in daily life. Unlike life satisfaction, unemployment leaves affective well-being mostly unaffected, which points to a major relevance of the loss of identity. This view is corroborated further by studies on the importance of the social norms to work and be self-reliant for the life satisfaction of the unemployed, as well as by studies showing the positive life satisfaction effect of retirement on unemployed workers. Based on this strong evidence for identity utility losses of unemployed persons, the notion of identity utility is used to explain heterogeneity in the effect of unemployment on life satisfaction. It is also linked to further consequences of unemployment, such as social exclusion and stigmatization. Moreover, this chapter uses identity utility to assess the likely effectiveness of labor market policies in alleviating the misery of the unemployed. Finally, research on work, happiness and identity is reconciled with a more standard economics view on labor supply based on studies examining the impact of working hours on workers' well-being.

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Labor market policies, unemployment, and identity

Schöb¹

2021

izawol

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Life satisfaction research in psychology and economics uses various measures of well-being to identify the channels through which unemployment and different types of labor market policies affect an individual's social identity and wellbeing. Bringing unemployed people back to work is much more beneficial than just compensating them for the income loss. A cost-benefit analysis that considers personal identity and subjective well-being provides the necessary base for designing more efficient and effective labor market policies that allow a better balance of active measures such as training schemes and other employment assistance programs for the unemployed that help people to work and passive measures such as unemployment insurance payments that only compensate the unemployed for their income loss. ELEVATOR PITCHUnemployment not only causes material hardship but can also affect an individual's sense of identity (i.e. their perception of belonging to a specific social group) and, consequently, feelings of personal happiness and subjective well-being. Labor market policies designed to help the unemployed may not overcome their misery: wage subsidies can be stigmatizing, measures that require some work or attendance for training from those receiving benefits (workfare) may not provide the intended incentives, and a combination of an unregulated labor market and policy measures that bring people who became unemployed quickly back to work (flexicurity) may increase uncertainty. Policies aimed at bringing people back to work should thus take the subjective well-being of the affected persons more into consideration.

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Do Job Creation Schemes Improve the Social Integration and Well-Being of the Long-Term Unemployed?

Cited by 3 publications

References 32 publications

Do Active Labor Market Policies Increase the Subjective Well-being of the Unemployed? Evidence from OECD Countries

Do Active Labor Market Policies Increase the Subjective Well-being of the Unemployed? Evidence from OECD Countries

Happiness, Work, and Identity

Labor market policies, unemployment, and identity

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