The threat effect of participation in active labor market programs on job search behavior of migrants in Germany
Labor market programs may aﬀect unemployed individuals’ behavior before they enroll. Such ex ante eﬀects may diﬀer according to ethnic origin. We apply a novel method that relates self-reported perceived treatment rates and job search behavioral outcomes, such as the reservation wage or search intensity, to each other. We compare German native workers with migrants with a Turkish origin or Central and Eastern European (including Russian) background. Job search theory is used to derive theoretical predictions. We examine the omnibus ex ante eﬀect of the German ALMP system, using the novel IZA Evaluation Data Set, which includes self-reported assessments of the variables of interest as well as an unusually detailed amount of information on behavior, attitudes and past outcomes. We ﬁnd that the ex ante threat eﬀect on the reservation wage and search eﬀort varies considerably among the groups considered.