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Choosing from the Reform Menu Card – Individual Determinants of Labour Market Policy Preferences

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Author Info

  • Friedrich Heinemann

    ()
    (ZEW Mannheim)

  • Ivo Bischoff

    ()
    (University of Giessen)

  • Tanja Henninghausen

    ()
    (ZEW Mannheim)

Abstract

This contribution empirically explores the drivers of labour market reform acceptance for the individual level in Germany. For that purpose we make use of the representative German General Social Survey (ALLBUS). This survey offers data to which extent individuals support benefit cuts, longer working years, cutting subsidies to declining industries, phasing out of employment programmes, or a liberalisation of employment protection. Our theoretical considerations suggest that self-interest, information, fairness judgements, economic beliefs and other individual factors such as socialisation under the communist regime in the former German Democratic Republic drive individual reform preferences. Our empirical results support this notion: While we find self-interest to be an important driving force, our results show that a number of factors well beyond the narrow scope of self-interest strongly shape individual reform preferences.

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Bibliographic Info

Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

Volume (Year): 229 (2009)
Issue (Month): 2-3 (June)
Pages: 180-197

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Handle: RePEc:jns:jbstat:v:229:y:2009:i:2-3:p:180-197

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Related research

Keywords: Labour market reform; economic beliefs; fairness preferences; ALLBUS;

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References

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  1. Corneo, Giacomo & Gruner, Hans Peter, 2002. "Individual preferences for political redistribution," Journal of Public Economics, Elsevier, vol. 83(1), pages 83-107, January.
  2. Tito Boeri & Ignacio Conde-Ruiz & Vincenzo Galasso, 2004. "Cross-skill Redistribution and the Tradeoff between Unemployment Benefits and Employment Protection," Working Papers 271, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  3. Pitlik, Hans & Wirth, Steffen, 2003. "Do crises promote the extent of economic liberalization?: an empirical test," European Journal of Political Economy, Elsevier, vol. 19(3), pages 565-581, September.
  4. Michael Neugart, 2008. "The choice of insurance in the labor market," Public Choice, Springer, vol. 134(3), pages 445-462, March.
  5. Konow, James, 2001. "Fair and square: the four sides of distributive justice," Journal of Economic Behavior & Organization, Elsevier, vol. 46(2), pages 137-164, October.
  6. Tan, Jonathan H.W., 2006. "Religion and social preferences: An experimental study," Economics Letters, Elsevier, vol. 90(1), pages 60-67, January.
  7. Saint-Paul, Gilles, 2000. "The Political Economy of Labour Market Institutions," OUP Catalogue, Oxford University Press, number 9780198293323, October.
  8. Marco Faravelli, 2006. "How Context Matters: A Survey Based Experiment on Distributive Justice," ESE Discussion Papers 145, Edinburgh School of Economics, University of Edinburgh.
  9. Tito Boeri & Axel Boersch-Supan & Guido Tabellini, 2002. "Pension Reforms and the Opinions of European Citizens," American Economic Review, American Economic Association, vol. 92(2), pages 396-401, May.
  10. Alberto Alesina & George-Marios Angeletos, 2004. "Fairness and Redistribution," NajEcon Working Paper Reviews 122247000000000306, www.najecon.org.
  11. Hennighausen, Tanja & Heinemann, Friedrich & Bischoff, Ivo, 2008. "Individual Determinants of Social Fairness Assessments: The Case of Germany," ZEW Discussion Papers 08-063, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  12. Paul Anand, 2000. "Procedural Fairness in Economic and Social Choice: Evidence from a Survey of Voters," Open Discussion Papers in Economics 27, The Open University, Faculty of Social Sciences, Department of Economics.
  13. Bryan Caplan, 2002. "Systematically Biased Beliefs About Economics: Robust Evidence of Judgemental Anomalies from the Survey of Americans and Economists on the Economy," Economic Journal, Royal Economic Society, vol. 112(479), pages 433-458, April.
  14. James Konow, 2003. "Which Is the Fairest One of All? A Positive Analysis of Justice Theories," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1188-1239, December.
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Cited by:
  1. Hans Pitlik & Gerhard Schwarz & Barbara Bechter & Bernd Brandl, 2010. "Near Is My Shirt but Nearer Is My Skin. Ideology or Self-Interest as Determinants of Public Opinion on Fiscal Policy Issues," WIFO Working Papers 373, WIFO.
  2. Stephan Dlugosz & Gesine Stephan & Ralf A. Wilke, . "Fixing the leak: Unemployment incidence before and after the 2006 reform of unemployment benefits in Germany," Discussion Papers 09/10, University of Nottingham, School of Economics.
  3. Friedrich Heinemann & Theocharis Grigoriadis, 2013. "Origins of Reform Resistance and the Southern European Regime," WWWforEurope Working Papers series 20, WWWforEurope.

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