@article{CaliendoKuennMahlstedt2017, author = {Caliendo, Marco and K{\"u}nn, Steffen and Mahlstedt, Robert}, title = {The return to labor market mobility}, series = {Journal of Public Economics}, volume = {148}, journal = {Journal of Public Economics}, publisher = {Elsevier}, address = {Lausanne}, issn = {0047-2727}, doi = {10.1016/j.jpubeco.2017.02.008}, pages = {136 -- 151}, year = {2017}, abstract = {In many European countries, labor markets are characterized by high regional disparities in terms of unemployment rates on the one hand and low geographical mobility among the unemployed on the other hand. In order to counteract the geographical mismatch of workers, the German active labor market policy offers a subsidy covering moving costs to incentivize unemployed job seekers to search/accept jobs in distant regions. Based on administrative data, this study provides the first empirical evidence on the impact of this subsidy on participants' prospective labor market outcomes. We use an instrumental variable approach to take endogenous selection based on observed and unobserved characteristics into account when estimating causal treatment effects. We find that unemployed job seekers who participate in the subsidy program and move to a distant region receive higher wages and find more stable jobs compared to non-participants. We show that the positive effects are (to a large extent) the consequence of a better job match due to the increased search radius of participants.}, language = {en} } @article{CaliendoKuennWeissenberger2016, author = {Caliendo, Marco and Kuenn, Steffen and Weißenberger, Martin}, title = {Personality traits and the evaluation of start-up subsidies}, series = {European economic review}, volume = {86}, journal = {European economic review}, publisher = {Elsevier}, address = {Amsterdam}, issn = {0014-2921}, doi = {10.1016/j.euroecorev.2015.11.008}, pages = {87 -- 108}, year = {2016}, abstract = {Many countries support business start-ups to spur economic growth and reduce unemployment with different programmes. Evaluation studies of such programmes commonly rely on the conditional independence assumption (CIA), allowing a causal interpretation of the results only if all relevant variables affecting participation and success are accounted for. While the entrepreneurship literature has emphasised the important role of personality traits as predictors for start-up decisions and business success, these variables were neglected in evaluation studies so far due to data limitations. In this paper, we evaluate a new start-up subsidy for unemployed individuals in Germany using propensity score matching under the CIA. Having access to rich administrative-survey data allows us to incorporate usually unobserved personality measures in the evaluation and investigate their impact on the estimated effects. We find strong positive effects on labour market reintegration and earned income for the new programme. Most importantly, results including and excluding individuals\&\#1523; personalities do not differ significantly, implying that concerns about potential overestimation of programme effects in the absence of personality measures might be less justified if the set of other control variables is rich enough.}, language = {en} } @techreport{CaliendoSchroederWittbrodt2019, type = {Working Paper}, author = {Caliendo, Marco and Schr{\"o}der, Carsten and Wittbrodt, Linda}, title = {The Causal Effects of the Minimum Wage Introduction in Germany}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {1}, issn = {2628-653X}, doi = {10.25932/publishup-42692}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-426929}, year = {2019}, abstract = {In 2015, Germany introduced a statutory hourly minimum wage that was not only universally binding but also set at a relatively high level. We discuss the short-run effects of this new minimum wage on a wide set of socio-economic outcomes, such as employment and working hours, earnings and wage inequality, dependent and self-employment, as well as reservation wages and satisfaction. We also discuss difficulties in the implementation of the minimum wage and the measurement of its effects related to non-compliance and suitability of data sources. Two years after the minimum wage introduction, the following conclusions can be drawn: while hourly wages increased for low-wage earners, some small negative employment effects are also identifiable. The effects on aspired goals, such as poverty and inequality reduction, have not materialized in the short run. Instead, a tendency to reduce working hours is found, which alleviates the desired positive impact on monthly income. Additionally, the level of non-compliance was substantial in the short run, thus drawing attention to problems when implementing such a wide-reaching policy.}, language = {en} } @article{CaliendoHogenackerKuennetal.2015, author = {Caliendo, Marco and Hogenacker, Jens and Kuenn, Steffen and Wiessner, Frank}, title = {Subsidized start-ups out of unemployment: a comparison to regular business start-ups}, series = {Small business economics : an international journal}, volume = {45}, journal = {Small business economics : an international journal}, number = {1}, publisher = {Springer}, address = {Dordrecht}, issn = {0921-898X}, doi = {10.1007/s11187-015-9646-0}, pages = {165 -- 190}, year = {2015}, abstract = {Offering unemployed individuals a subsidy to become self-employed is a widespread active labor market policy strategy. Previous studies have illustrated its high effectiveness to help participants escaping unemployment and improving their labor market prospects compared to other unemployed individuals. However, the examination of start-up subsidies from a business perspective has only received little attention to date. Using a new dataset based on a survey allows us to compare subsidized start-ups out of unemployment with regular business founders, with respect to not only personal characteristics but also business outcomes. The results indicate that previously unemployed entrepreneurs face disadvantages in variables correlated with entrepreneurial ability and access to capital. Nineteen months after start-up, the subsidized businesses experience higher survival, but lag behind regular business founders in terms of income, business growth and innovation. Moreover, we show that expected deadweight effects related to start-up subsidies occur on a (much) lower scale than usually assumed.}, language = {en} } @article{CaliendoKuenn2015, author = {Caliendo, Marco and K{\"u}nn, Steffen}, title = {Getting back into the labor market: the effects of start-up subsidies for unemployed females}, series = {Journal of population economics}, volume = {28}, journal = {Journal of population economics}, number = {4}, publisher = {Springer}, address = {New York}, issn = {0933-1433}, doi = {10.1007/s00148-015-0540-5}, pages = {1005 -- 1043}, year = {2015}, abstract = {Low female labor market participation is a problem many developed countries have to face. Beside activating inactive women, one possible solution is to support the re-integration of unemployed women. Due to female-specific labor market constraints (preferences for flexible working hours, discrimination), this is a difficult task, and the question arises whether active labor market policies (ALMP) are an appropriate tool to help. It has been shown that the effectiveness of traditional (ALMP) programs-which focus on the integration in dependent (potentially inflexible) employment-is positive but limited. At the same time, recent evidence for Austria shows that these programs reduce fertility which might be judged unfavorable from a societal perspective. Promoting self-employment among unemployed women might therefore be a promising alternative. Starting their own business might give women more independence and flexibility to reconcile work and family and increase labor market participation. Based on long-term informative data, we find that start-up programs persistently integrate former unemployed women into the labor market, and the impact on fertility is less detrimental than for traditional ALMP programs.}, language = {en} } @article{CaliendoKuenn2014, author = {Caliendo, Marco and Kuenn, Steffen}, title = {Regional effect heterogeneity of start-up subsidies for the unemployed}, series = {Regional studies}, volume = {48}, journal = {Regional studies}, number = {6}, publisher = {Routledge, Taylor \& Francis Group}, address = {Abingdon}, issn = {0034-3404}, doi = {10.1080/00343404.2013.851784}, pages = {1108 -- 1134}, year = {2014}, abstract = {Sin embargo, todavia no se han analizado los efectos potencialmente heterogeneos de los programas para proyectos empresariales en los diferentes mercados laborales de ambito regional. Las restricciones en la demanda de empleo en areas mas desfavorecidas generalmente hacen aumentar el numero de personas que aprovechan estos programas porque las ofertas laborales son limitadas. Sin embargo, la supervivencia de empresas en estas areas es tambien mas baja, de modo que sigue sin estar claro el efecto general. Basandonos en datos alemanes, observamos que el proceso de creacion, el desarrollo de negocios y la eficacia de los programas estan influenciados por las condiciones economicas imperantes en el momento de la creacion de la empresa.}, language = {en} } @phdthesis{Kuenn2012, author = {K{\"u}nn, Steffen}, title = {Unemployment and active labor market policy : new evidence on start-up subsidies, marginal employment and programs for youth unemployed}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus-62718}, school = {Universit{\"a}t Potsdam}, year = {2012}, abstract = {In industrialized economies such as the European countries unemployment rates are very responsive to the business cycle and significant shares stay unemployed for more than one year. To fight cyclical and long-term unemployment countries spend significant shares of their budget on Active Labor Market Policies (ALMP). To improve the allocation and design of ALMP it is essential for policy makers to have reliable evidence on the effectiveness of such programs available. Although the number of studies has been increased during the last decades, policy makers still lack evidence on innovative programs and for specific subgroups of the labor market. Using Germany as a case study, the dissertation aims at contributing in this way by providing new evidence on start-up subsidies, marginal employment and programs for youth unemployed. The idea behind start-up subsidies is to encourage unemployed individuals to exit unemployment by starting their own business. Those programs have compared to traditional programs of ALMP the advantage that not only the participant escapes unemployment but also might generate additional jobs for other individuals. Considering two distinct start-up subsidy programs, the dissertation adds three substantial aspects to the literature: First, the programs are effective in improving the employment and income situation of participants compared to non-participants in the long-run. Second, the analysis on effect heterogeneity reveals that the programs are particularly effective for disadvantaged groups in the labor market like low educated or low qualified individuals, and in regions with unfavorable economic conditions. Third, the analysis considers the effectiveness of start-up programs for women. Due to higher preferences for flexible working hours and limited part-time jobs, unemployed women often face more difficulties to integrate in dependent employment. It can be shown that start-up subsidy programs are very promising as unemployed women become self-employed which gives them more flexibility to reconcile work and family. Overall, the results suggest that the promotion of self-employment among the unemployed is a sensible strategy to fight unemployment by abolishing labor market barriers for disadvantaged groups and sustainably integrating those into the labor market. The next chapter of the dissertation considers the impact of marginal employment on labor market outcomes of the unemployed. Unemployed individuals in Germany are allowed to earn additional income during unemployment without suffering a reduction in their unemployment benefits. Those additional earnings are usually earned by taking up so-called marginal employment that is employment below a certain income level subject to reduced payroll taxes (also known as "mini-job"). The dissertation provides an empirical evaluation of the impact of marginal employment on unemployment duration and subsequent job quality. The results suggest that being marginal employed during unemployment has no significant effect on unemployment duration but extends employment duration. Moreover, it can be shown that taking up marginal employment is particularly effective for long-term unemployed, leading to higher job-finding probabilities and stronger job stability. It seems that mini-jobs can be an effective instrument to help long-term unemployed individuals to find (stable) jobs which is particularly interesting given the persistently high shares of long-term unemployed in European countries. Finally, the dissertation provides an empirical evaluation of the effectiveness of ALMP programs to improve labor market prospects of unemployed youth. Youth are generally considered a population at risk as they have lower search skills and little work experience compared to adults. This results in above-average turnover rates between jobs and unemployment for youth which is particularly sensitive to economic fluctuations. Therefore, countries spend significant resources on ALMP programs to fight youth unemployment. However, so far only little is known about the effectiveness of ALMP for unemployed youth and with respect to Germany no comprehensive quantitative analysis exists at all. Considering seven different ALMP programs, the results show an overall positive picture with respect to post-treatment employment probabilities for all measures under scrutiny except for job creation schemes. With respect to effect heterogeneity, it can be shown that almost all programs particularly improve the labor market prospects of youths with high levels of pretreatment schooling. Furthermore, youths who are assigned to the most successful employment measures have much better characteristics in terms of their pre-treatment employment chances compared to non-participants. Therefore, the program assignment process seems to favor individuals for whom the measures are most beneficial, indicating a lack of ALMP alternatives that could benefit low-educated youths.}, language = {en} }