Temporary work as an active labour market policy: Evaluating an innovative activation programme for disadvantaged youths

Abstract

While high rates of youth unemployment are a severe problem in most European countries, the programme evaluation literature shows that disadvantaged youths constitute a group that is particularly difficult to assist effectively. As innovative measures are thus needed, we evaluate a German pilot programme that targets low-skilled young unemployed and combines three components: a) individual coaching, b) classroom training and c) temporary work. Using an ex post quasi-randomisation approach, our analysis shows that the programme has a positive impact on the post-programme employment probability of participants.