Of carrots and sticks: the effect of workfare announcements on the job search behaviour and reservation wage of welfare recipients

Hohmeyer, Katrin; Wolff, Joachim

doi:10.1186/s12651-018-0245-9

Journal for Labour Market Research

Table 8 Robustness check—ATT of receiving a One-Euro-Job announcement, results from nearest neighbour 5-to-1-matching.

From: Of carrots and sticks: the effect of workfare announcements on the job search behaviour and reservation wage of welfare recipients

	Total	East Germany	West Germany	Last regular job ended
	Total	East Germany	West Germany	< 4 years ago	≥ 4 years ago, never employed, missing
Job search activities during past 4 weeks
Job search: yes	0.041*	0.040	0.042	− 0.019	0.058**
Job search via …
… Job advertisements in newspapers	0.046*	0.054	0.040	0.024	0.057**
… Employment agencies’ online job market	0.015	0.051	− 0.006	− 0.009	− 0.009
… Other internet sources	0.028	0.028	0.048	− 0.006	0.024
… Family and friends	0.057*	0.045	0.064**	0.025	0.067**
… Placement officer at the employment agency	0.012	0.002	0.045	0.016	− 0.001
… Private job placement service	− 0.002	− 0.009	− 0.004	− 0.015	0.007
… Other, not coded	0.003	0.013	0.001	0.001	0.002
No. of different search channels	0.190*	0.210	0.199	0.039	0.176
Looked for any possible job	0.049**	− 0.009	0.062**	− 0.046	0.062**
Application activities during past 4 weeks
Replied to job advertisements	0.036	0.016	0.055*	− 0.045	0.034
Placed an ‘employment wanted’ advertisement	0.001	− 0.009	− 0.001	− 0.020	− 0.002
Asked for a job at the company itself	0.059***	0.032	0.056*	− 0.028	0.071***
Submitted application without concrete job advertisement	− 0.008	0.020	− 0.020	− 0.040	− 0.029
Job application > 100 km away from current residence	0.008	0.009	− 0.014	− 0.011	− 0.004
No. of applications for job advertisements	− 0.175	− 0.333	0.007	− 0.625	− 0.282
No. of pro-active applications	0.076	− 0.123	0.109	0.088	− 0.300*
Total no. of applications	− 0.099	− 0.456	0.116	− 0.537	− 0.583*
No. of application channels	0.089	0.059	0.090	− 0.132	0.074
Reservation wage, employment and income
Hourly reservation wage after tax in €^a	− 0.257**	− 0.094	− 0.244	− 0.107	− 0.359**
Contributory employment	− 0.015	− 0.011	− 0.015	− 0.018	− 0.017
Minor employment	− 0.029	− 0.010	− 0.030	− 0.054	− 0.021
Household receives UB II	0.018	0.027	0.016	0.035	0.012
Equivalent household income in €^{a, b}	− 9.858	− 10.099	− 84.859**	33.373	− 50.332
Treated	677	325	352	192	478
Treated on support	661	301	341	171	459
Potential controls	4584	1572	3012	1504	3044
Matched controls	1902	774	1079	500	1338
MSB before matching	9.976	10.154	10.048	13.146	11.100
MSB after matching	1.548	2.765	2.369	3.944	1.937

Results from nearest neighbour 5-to-1 matching with exact matching on gender, region and wave. Effects on share of a positive answer (0 = no, 1 = yes) unless stated otherwise
^aDeflated to price level 2010 = 1
^bThis income measure covers all types of income sources, also from social benefits. For details see Berg et al. (2013)
*p < 0.10; **p < 0.05; ***p < 0.01

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