Which Active Labor Market Policies Work for Male Refugees? Evidence from Germany

Abstract

In this paper, we estimate the causal effects of a set of active labor market programs for male unemployed refugees on welfare who entered Germany between, 2013 and September, 2016. Using rich administrative data, we employ covariate balancing propensity scores combined with inverse probability weighting to estimate effects up to 33 months after the start of treatment. Our results show that relatively short-term training in the form of Schemes by Providers and In-Firm Training, as well as longer-term Further Vocational Training programs have a positive impact on both the employment chances as well as labor market earnings of refugees in the medium run. So-called One Euro Jobs, a public employment program, does not yield positive effects on employment or earnings. Sensitivity analyses confirm that our results are unlikely to be driven by unobserved confounding.