Boockmann, Bernhard Thomsen, Stephan L. Walter, Thomas Göbel, Christian Huber, Martin
IAW Diskussionspapiere 69
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