Boockmann, Bernhard Thomsen, Stephan L. Walter, Thomas Göbel, Christian Huber, Martin
Year of Publication:
IAW Diskussionspapiere No. 69
Institut für Angewandte Wirtschaftsforschung (IAW), Tübingen
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.
Welfare System Organization Decentralization Labor Market Integration