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Labour Market Policies in Transition: Lessons from East Germany

  • Horst Feldmann

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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Article provided by Taylor & Francis Journals in its journal Post-Communist Economies.

Volume (Year): 14 (2002)
Issue (Month): 1 ()
Pages: 47-84

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Handle: RePEc:taf:pocoec:v:14:y:2002:i:1:p:47-84
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  1. Lechner, Michael, 1999. "An Evaluation of Public-Sector-Sponsored Continuous Vocational Training Programs in East Germany," IZA Discussion Papers 93, Institute for the Study of Labor (IZA).
  2. Steiner, Viktor & Hagen, Tobias, 2000. "Von der Finanzierung der Arbeitslosigkeit zur Förderung von Arbeit: Analysen und Empfehlungen zur Steigerung der Effizienz und Effektivität der Arbeitsmarktpolitik in Deutschland. Kurzfassung," ZEW Expertises, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research, number 110489.
  3. 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.
  4. 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).
  5. Florian Kraus & Patrick Puhani & Viktor Steiner, 1999. "Employment Effects of Publicly Financed Training Programs - The East German Experience," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 219(1+2), pages 216-248, July.
  6. 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.
  7. Eichler, Martin & Lechner, Michael, 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).
  8. 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.
  9. 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.
  10. 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.
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