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|Title:||Should welfare administration be centralized or decentralized? Evidence from a policy experiment |
Thomsen, Stephan L.
|Issue Date:||2010 |
|Series/Report no.:||ZEW Discussion Papers 10-106|
|Abstract:||The 2005 reform of the German welfare system introduced two competing organizational models for welfare administration. In most districts, a centralized organization was established where local welfare agencies are bound to central directives. At the same time, 69 districts were allowed to opt for a decentralized organization. We evaluate the relative success of both types of organizations. Compared to centralized organization, decentralized organization of welfare administration has a negative effect on the transition of male welfare recipients to self-sufficient employment, but it does not affect employment in combination with continuing welfare support. No significant effects were found for women.|
Labor Market Integration
|Document Type:||Working Paper|
|Appears in Collections:||ZEW Discussion Papers, Zentrum für Europäische Wirtschaftsforschung (ZEW)|
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