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Electoral cycles in active labor market policies

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  • Mario Mechtel

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  • Niklas Potrafke

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Abstract

We examine how electoral motives influence active labor market policies that promote (short term) job-creation. Such policies reduce measures of unemployment. Using German state data for the period 1985 to 2004, we show that election-motivated politicians pushed job-promotion schemes before elections. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Mario Mechtel & Niklas Potrafke, 2013. "Electoral cycles in active labor market policies," Public Choice, Springer, vol. 156(1), pages 181-194, July.
  • Handle: RePEc:kap:pubcho:v:156:y:2013:i:1:p:181-194
    DOI: 10.1007/s11127-011-9890-z
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    Cited by:

    1. C. Reynolds, 2014. "State politics, tuition, and the dynamics of a political budget cycle," Empirical Economics, Springer, vol. 46(4), pages 1241-1270, June.
    2. Reischmann, Markus, 2016. "Creative accounting and electoral motives: Evidence from OECD countries," Journal of Comparative Economics, Elsevier, vol. 44(2), pages 243-257.
    3. repec:kap:itaxpf:v:24:y:2017:i:3:d:10.1007_s10797-016-9404-5 is not listed on IDEAS
    4. Cahan, Dodge, 2017. "Electoral cycles in government employment: Evidence from US gubernatorial elections," University of California at San Diego, Economics Working Paper Series qt8wn83441, Department of Economics, UC San Diego.
    5. Spyros Skouras & Nicos Christodoulakis, 2011. "Electoral Misgovernance Cycles: Evidence from wildfires and tax evasion in Greece and elsewhere," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 47, Hellenic Observatory, LSE.
    6. Niklas Potrafke & Marina Riem & Christoph Schinke, 2016. "Debt Brakes in the German States: Governments’ Rhetoric and Actions," German Economic Review, Verein für Socialpolitik, vol. 17(2), pages 253-275, May.
    7. Margarita Katsimi & Vassilis Sarantides, 2015. "Public investment and reelection prospects in developed countries," Southern Economic Journal, Southern Economic Association, vol. 82(2), pages 471-500, October.
    8. Spyros Skouras & Nicos Christodoulakis, 2014. "Electoral misgovernance cycles: evidence from wildfires and tax evasion in Greece," Public Choice, Springer, vol. 159(3), pages 533-559, June.
    9. Foremny, Dirk & Freier, Ronny & Moessinger, Marc-Daniel & Yeter, Mustafa, 2014. "Overlapping political budget cycles in the legislative and the executive," ZEW Discussion Papers 14-099, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    10. Björn Kauder & Manuela Krause & Niklas Potrafke, 2016. "Electoral Cycles in MPs' Salaries: Evidence from the German States," CESifo Working Paper Series 6028, CESifo Group Munich.
    11. Konstantinos Konstantakis & Theofanis Papageorgiou & Panayotis Michaelides & Efthymios Tsionas, 2015. "Economic Fluctuations and Fiscal Policy in Europe: A Political Business Cycles Approach Using Panel Data and Clustering (1996–2013)," Open Economies Review, Springer, vol. 26(5), pages 971-998, November.
    12. Kauder, Björn & Potrafke, Niklas & Reischmann, Markus, 2016. "Do politicians reward core supporters? Evidence from a discretionary grant program," European Journal of Political Economy, Elsevier, vol. 45(C), pages 39-56.
    13. Marina Riem, 2016. "Corporate investment decisions under political uncertainty," ifo Working Paper Series 221, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    14. Mario Mechtel & Niklas Potrafke, 2012. "Aktive Arbeitsmarktpolitik und Wahltermine," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 65(16), pages 35-37, August.
    15. Pantelis Kammas & Vassilis Sarantides, 2016. "Fiscal redistribution around elections when democracy is not “the only game in town”," Public Choice, Springer, vol. 168(3), pages 279-311, September.
    16. repec:eee:regeco:v:64:y:2017:i:c:p:1-11 is not listed on IDEAS
    17. Martin, Thorsten, 2017. "You shall not build! (until tomorrow) [:] Electoral cycles and housing policies in Germany," MPRA Paper 78998, University Library of Munich, Germany.

    More about this item

    Keywords

    Political business cycles; Opportunistic politicians; Active labor market policies; P16; J08; H72; E62; H61;

    JEL classification:

    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems

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