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

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  • Hennighausen, Tanja
  • Bischoff, Ivo
  • Heinemann, Friedrich

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

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 09-004.

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Date of creation: 2009
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Handle: RePEc:zbw:zewdip:7530

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

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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. 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.
  3. Faravelli, Marco, 2007. "How context matters: A survey based experiment on distributive justice," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1399-1422, August.
  4. Alberto Alesina & George-Marios Angeletos, 2004. "Fairness and Redistribution," Levine's Bibliography 122247000000000283, UCLA Department of Economics.
  5. 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.
  6. 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.
  7. Tan, Jonathan H.W., 2006. "Religion and social preferences: An experimental study," Economics Letters, Elsevier, vol. 90(1), pages 60-67, January.
  8. Michael Neugart, 2008. "The choice of insurance in the labor market," Public Choice, Springer, vol. 134(3), pages 445-462, March.
  9. Saint-Paul, Gilles, 2000. "The Political Economy of Labour Market Institutions," OUP Catalogue, Oxford University Press, number 9780198293323, September.
  10. 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.
  11. 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.
  12. Boeri, Tito & Conde-Ruiz, J. Ignacio & Galasso, Vincenzo, 2004. "Cross-Skill Redistribution and the Tradeoff between Unemployment Benefits and Employment Protection," IZA Discussion Papers 1371, Institute for the Study of Labor (IZA).
  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. 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.
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Cited by:
  1. Friedrich Heinemann & Theocharis Grigoriadis, 2013. "Origins of Reform Resistance and the Southern European Regime," WWWforEurope Working Papers series 20, WWWforEurope.
  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. Hans Pitlik & Gerhard Schwarz & Barbara Bechter & Bernd Brandl, 2011. "Near Is My Shirt but Nearer Is My Skin: Ideology or Self‐Interest as Determinants of Public Opinion on Fiscal Policy Issues," Kyklos, Wiley Blackwell, vol. 64(2), pages 271-290, 05.

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