Randomized experiments provide policy relevant treatment effects if there are no spillovers between participants and nonparticipants. We show that this assumption is violated for a Danish activation program for unemployed workers. Using a difference-in-difference model we show that the...

In some countries including Germany unemployed workers can increase their income during job search by taking up "marginal employment" up to a threshold without any deduction from their benefits. Marginal employment can be considered as a wage subsidy as it lowers labour costs for firms owing to...

Short-term training has recently become the largest active labor market program in Germany regarding the number of participants. Little is known on the effectiveness of different types of short-term training and on their long-run effects. This paper estimates the effects of short-term training...