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Title:Active Labor Market Policy in Germany - Is There a Successful Policy Strategy? PDF Logo
Authors:Fertig, Michael
Schmidt, Christoph M.
Schneider, Hilmar
Issue Date:2002
Series/Report no.:IZA Discussion paper series 576
Abstract:Each year Germany and many other developed economies spend tens of billions of Euros on active measures of employment promotion with the explicit aim of contributing to the reduction of unemployment. Yet, high unemployment has universally been a persistent problem throughout the last two decades, raising the question as to the actual effect of the measures of employment promotion. This paper contributes to the received literature by investigating whether a specific strategy of active labor market policy measures can contribute to a significant reduction of unemployment on the (semi-) aggregate level of the local labor offices in Germany. To this end, we analyze ALMP in Germany in a spatially augmented regression framework. Our results suggest that a policy strategy focusing on monetary incentive schemes rather than on public employment programs is more successful.
Subjects:evaluation
identification
spatial econometrics
JEL:R23
H43
J68
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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