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And Then There Were Four...How Many (and Which) Measures of Active Labor Market Policy Do We Still Need?

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  • Werner Eichhorst
  • Klaus F. Zimmermann

Abstract

Through the Hartz reforms, German active labor market policy was fundamentally restructured and systematically evaluated. This paper reviews the recent evaluation findings and draws conclusions for the future setup of active labor market policies. It argues in favor of a reduced range of active labor market policy schemes focusing on programs with proven positive effects (that currently are wage subsidies, training, start-up grants and placement vouchers). It calls for a systematic evaluation of all instruments not scrutinized so far, and for a permanent process of decentralized experimentation and re-evaluation.

Suggested Citation

  • Werner Eichhorst & Klaus F. Zimmermann, 2007. "And Then There Were Four...How Many (and Which) Measures of Active Labor Market Policy Do We Still Need?," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 53(3), pages 243-272.
  • Handle: RePEc:aeq:aeqaeq:v53_y2007_i3_q3_p243-272
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    Citations

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    Cited by:

    1. Laun, Lisa, 2019. "In-work benefits across Europe," Working Paper Series 2019:16, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    2. Marco Caliendo & Alexander Kritikos, 2010. "Start-ups by the unemployed: characteristics, survival and direct employment effects," Small Business Economics, Springer, vol. 35(1), pages 71-92, July.
    3. Ulf Rinne & Klaus F Zimmermann, 2013. "Is Germany the North Star of Labor Market Policy?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 61(4), pages 702-729, December.
    4. Ulf Rinne & Marc Schneider & Arne Uhlendorff, 2011. "Do the skilled and prime-aged unemployed benefit more from training? Effect heterogeneity of public training programmes in Germany," Applied Economics, Taylor & Francis Journals, vol. 43(25), pages 3465-3494.
    5. Caliendo, Marco, 2009. "Income support systems, labor market policies and labor supply: the German experience," Working Paper Series 2009:26, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    6. Wolfgang Nagl, 2014. "Lohnrisiko und Altersarmut im Sozialstaat," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 54, April.
    7. Spermann, Alexander, 2014. "Zehn Jahre Hartz IV – Was hilft Langzeitarbeitslosen wirklich?," IZA Standpunkte 76, Institute of Labor Economics (IZA).
    8. Marco Caliendo & Alexander S. Kritikos, 2009. "Die reformierte Gründungsförderung für Arbeitslose – Chancen und Risiken," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 10(2), pages 189-213, May.
    9. Fitzenberger, Bernd, 2008. "Nach der Reform ist vor der Reform? Eine arbeitsökonomische Analyse ausgewählter Aspekte der Hartz-Reformen," ZEW Discussion Papers 08-011 [rev.], ZEW - Leibniz Centre for European Economic Research.
    10. Konle-Seidl, Regina, 2008. "Changes in the governance of employment services in Germany since 2003," IAB-Discussion Paper 200810, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. Caliendo, Marco & Lee, Wang-Sheng, 2013. "Fat chance! Obesity and the transition from unemployment to employment," Economics & Human Biology, Elsevier, vol. 11(2), pages 121-133.
    12. Zimmermann, Klaus F., 2013. "Labor Market Reforms and the Great Recession," IZA Policy Papers 75, Institute of Labor Economics (IZA).
    13. Annette Bergemann & Marco Caliendo & Gerard J. van den Berg & Klaus F. Zimmermann, 2011. "The threat effect of participation in active labor market programs on job search behavior of migrants in Germany," International Journal of Manpower, Emerald Group Publishing Limited, vol. 32(7), pages 777-795, October.
    14. Michael Stuetzer & Martin Obschonka & Udo Brixy & Rolf Sternberg & Uwe Cantner, 2014. "Regional characteristics, opportunity perception and entrepreneurial activities," Small Business Economics, Springer, vol. 42(2), pages 221-244, February.
    15. Alexander Spermann, 2015. "How to fight long-term unemployment: lessons from Germany," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-15, December.
    16. Marco Caliendo & Jens Hogenacker, 2012. "The German labor market after the Great Recession: successful reforms and future challenges," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-24, December.
    17. Klaus F. Zimmermann, 2008. "Drei Schritte vor und zwei zurück: Agendapolitik am Scheideweg: Editorial," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 77(1), pages 5-7.
    18. Ulf Rinne & Klaus Zimmermann, 2012. "Another economic miracle? The German labor market and the Great Recession," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-21, December.
    19. Eichhorst, Werner, 2007. "Der Arbeitsmarkt in Deutschland: Zwischen Strukturreformen und sozialpolitischem Reflex," IZA Discussion Papers 3194, Institute of Labor Economics (IZA).
    20. Kluve, Jochen & Schneider, Hilmar & Uhlendorff, Arne & Zhao, Zhong, 2012. "Evaluating continuous training programmes by using the generalized propensity score," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 175(2), pages 587-617.
    21. Wolfgang Nagl & Michael Weber, 2014. "Unemployment compensation and unemployment duration before and after the German Hartz IV reform," ifo Working Paper Series 186, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    22. Christian Hundt & Rolf Sternberg, 2016. "Explaining new firm creation in Europe from a spatial and time perspective: A multilevel analysis based upon data of individuals, regions and countries," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 223-257, June.
    23. Kloß, Michael & Nagl, Wolfgang, 2013. "Unemployment compensation and unemployment duration - Evidence from the German Hartz IV reform," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79711, Verein für Socialpolitik / German Economic Association.
    24. Theodoropoulos, Nikolaos & Voucharas, Georgios, 2023. "Firm Closures and Labor Market Policies in Europe: Evidence from Retrospective Longitudinal Data," GLO Discussion Paper Series 1288, Global Labor Organization (GLO).

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    More about this item

    Keywords

    active labor market policy; Germany; evaluation;
    All these keywords.

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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