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Labour Market Policies in Transition: Lessons from East Germany

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Horst Feldmann

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Abstract

This article analyses and evaluates all types of active and passive labour market policies which have been pursued in East Germany during its transition from a centrally planned to a market economy. To this end, the article makes full use of the numerous, mostly German studies which have been carried out over the past years and which each mostly analysed only one type of labour market policy. The article shows that several of these labour market policy programmes did not improve the participants' position on the labour market; frequently, they even worsened it. In addition, most types of labour market policies had negative side-effects on non-participating unemployed as well as on regular employees. Based on this outcome, the article also draws fundamental policy conclusions.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Post-Communist Economies.

Volume (Year): 14 (2002)
Issue (Month): 1 (March)
Pages: 47-84
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Handle: RePEc:taf:pocoec:v:14:y:2002:i:1:p:47-84

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Fitzenberger, Bernd & Prey, Hedwig, 2000. "Evaluating Public Sector Sponsored Training in East Germany," Oxford Economic Papers, Oxford University Press, vol. 52(3), pages 497-520, July.
  2. Kraus, Florian & Puhani, Patrick A. & Steiner, Viktor, 1997. "Employment Effects of Publicly Financed Training Programs The East German Experience," ZEW Discussion Papers 97-33, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  3. Michael Lechner & Martin Eichler, 1999. "An Evaluation of Public Employment Programmes in the East German State of Sachsen-Anhalt," IZA Discussion Papers 94, Institute for the Study of Labor (IZA). [Downloadable!]
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  4. Johannes Schwarze & Ulrich Rendtel & Felix Büchel, 1995. "Income Effects of Unemployment and Short-Time Work in East German Transformation Process," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 64(3), pages 477-486.
  5. Hans-Werner Sinn, 2000. "Zehn Jahre deutsche Wiedervereinigung - Ein Kommentar zur Lage der neuen Länder," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 53(26-27), pages 10-22, November.
  6. Lechner, Michael, . "An Evaluation of Public Sector Sponsored Continuous Vocational Training Programs in East Germany," IVS discussion paper series 539, Institut für Volkswirtschaft und Statistik (IVS), University of Mannheim. [Downloadable!]
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  7. Kraus, Florian & Puhani, Patrick A. & Steiner, Viktor, 1998. "Do public works programs work? : Some unpleasant results from the East German experience," ZEW Discussion Papers 98-07, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  8. Hujer, Reinhard & Wellner, Marc, 2000. "The Effects of Public Sector Sponsored Training on Individual Employment Performance in East Germany," IZA Discussion Papers 141, Institute for the Study of Labor (IZA). [Downloadable!]
  9. Pfeiffer, Friedhelm & Reize, Frank, 2000. "Business start-ups by the unemployed -- an econometric analysis based on firm data," Labour Economics, Elsevier, vol. 7(5), pages 629-663, September. [Downloadable!] (restricted)
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Cited by:
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  1. Sˇtefan Bojnec, 2003. "Wage formation during economic transformation: macroeconomic facts and firm survey evidence from Slovenia," Post-Communist Economies, Taylor and Francis Journals, vol. 15(4), pages 571-593, December. [Downloadable!] (restricted)
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