Does activation increase lone mothers' employment chances?Effects of training and workfare for lone mothers receiving means-tested benefits in Germany.

Purpose – The aim of this paper is to study employment effects of workfare and training programs for lone mothers receiving means-tested benefits in Germany. Design/methodology/approach – The empirical analyses are based on a large-scale administrative data set covering the entire population of unemployed means-tested benefit recipients. A timing-of-events approach is used to control for possible selectivity in program entries. Findings – Findings are that lone mothers particularly profit from participating in vocational training programs. It seems they can benefit from updating their job skills after having interrupted their employment for childcare. By contrast, workfare does not seem to be beneficial for those with young children. Workfare is especially intended to enhance participants' motivation to increase their job search efforts. The main reason lone mothers of young children have not been employed is however likely to be lack of childcare, rather than lack of motivation. Practical implications – Lone mothers of young children are perhaps not an adequate focus group for workfare, and should be assigned there less often, and instead more frequently to skill training programs. Originality/value – As of yet, very little research has investigated effects of training and workfare programs specifically for lone mothers in Germany. The findings from the present study can contribute to understanding whether lone mothers, who are strongly targeted by these programs despite facing employment obstacles on account of low levels of childcare provision, can actually profit from program participations. [ABSTRACT FROM AUTHOR]