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http://hdl.handle.net/10419/33357
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| Title: | | Before and after the Hartz reforms: the performance of active labour market policy in Germany  |
| Authors: | | Jacobi, Lena Kluve, Jochen |
| Issue Date: | | 2006 |
| Series/Report no.: | | IZA Discussion Papers 2100 |
| Abstract: | | Having faced high unemployment rates for more than a decade, the German government implemented a comprehensive set of labour market reforms during the period 2003-2005. This paper describes the economic and institutional context of the German labour market before and after these so-called Hartz reforms. Focussing on active policy measures, we delineate the rationale for reform and its main principles. As results of programme evaluation studies post-reform have become available just now, we give a first assessment of the effectiveness of key elements of German ALMP before and after the Hartz reforms. The evidence indicates that the re-organisation of public employment services was mainly successful, with the exception of the outsourcing of services. Re-designing training programmes seems to have improved their effectiveness, while job creation schemes continue to be detrimental for participants' employment prospects. Wage subsidies and start-up subsidies show significantly positive effects. On balance, therefore, the reform seems to be moving the German labour market in the right direction. |
| Subjects: | | Active Labour Market Policy labour market reform programme evaluation |
| JEL: | | J0 J68 J88 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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