The threat effect of participation in active labor market programs on job search behavior of migrants in Germany

Abstract

PurposeLabor market programs may affect unemployed individuals' behavior before they enroll. The aim of this paper is to study whether such ex ante effects differ according to ethnic origin.Design/methodology/approachThe authors apply a method that relates self‐reported perceived treatment rates and job search behavioral outcomes, such as the reservation wage or search intensity, to each other. German native workers are compared with migrants with a Turkish origin or Central and Eastern European (including Russian) background. Job search theory is used to derive theoretical predictions. The ex ante effect of the German active labor market program (ALMP) system is examined 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.FindingsIt is found that the ex ante threat effect on the reservation wage and search effort varies considerably among the groups considered.Originality/valueThe study is the first to investigate whether migrants and natives react similarly to the expectation of participating in an ALMP, and whether migrants of different regions of origin react similarly or not.

The effects of active labour market policies for immigrants receiving social assistance in Denmark

“…Caliendo and Kühn (2011) find positive effects of start-up programmes for both immigrants and natives in Germany. Bergemann et al (2011) find positive ex ante/threat effects of ALMPs on search effort for Eastern European immigrants in Germany, whereas there is no effect for Turkish immigrants.…”

The IZA Evaluation Dataset: towards evidence‐based labor policy making

“…This could mean that part of the positive effect of program participation would in fact have to be attributed to this pre-program effect. Bergemann, Caliendo, van den Berg and Zimmermann (2010) show that these anticipation effects operate differently for natives and migrants. focus on re-employment prospects of migrants.…”

The Threat Effect of Active Labor Market Programs: A Systematic Review

“…A difference in self‐reported perceived threat of participation in programs combined with matching was used in Bergemann et al . (). Finally, one study based the identification of the threat effect on functional form assumptions (Rosholm and Svarer, ) and another on exclusion restrictions (Jensen et al ., ).…”