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Electoral cycles in active labor market policies

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  • Mario Mechtel
  • Niklas Potrafke

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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    More about this item

    Keywords

    Political business cycles; Opportunistic politicians; Active labor market policies; P16; J08; H72; E62; H61;
    All these keywords.

    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • 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; Modern Monetary Theory
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems

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