Effects of participating in skill training and workfare on employment entries for lone mothers receiving means-tested benefits in Germany

This paper investigates employment effects of further vocational training, short classroom training, as well as One-Euro-Jobs for lone mothers receiving Unemployment Benefit II (UB II) in Germany. Lone mothers receiving UB II participate in these active labor market programs at very high rates. As soon as their youngest child is aged three or above, their program entry rates are as high as for childless singles. This paper examines whether lone mothers can actually profit from partici-pating in these programs, given low levels of childcare provision. The empirical analyses are based on administrative data. A timing-of-events approach is used to control for possible selectivity in program entries. Separate models are estimated for entries into minor employment, regular contributory employment in general, and regular contributory employment connected to a complete exit from benefit receipt. Findings are that lone mothers profit especially strongly from participating in voca-tional training programs in terms of entering regular contributory employment in general as well as regular contributory employment connected to a complete exit from benefit receipt. Presumably, they can particularly benefit from updating their job skills after interrupting their employment for some time to care for their children. Ef-fects of short classroom training programs are somewhat smaller, and One-Euro-Jobs have small positive effects for some, but not all, groups of lone mothers.