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And Then There Were Four ...: How Many (and Which) Measures of Active Labor Market Policy Do We Still Need? ; Finding a Balance after the Evaluation of the Hartz Reforms in Germany

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  • Werner Eichhorst
  • Klaus F. Zimmermann

Abstract

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

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? ; Finding a Balance after the Evaluation of the Hartz Reforms in Germany," Discussion Papers of DIW Berlin 685, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp685
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    18. Jacobi, Lena & Kluve, Jochen, 2006. "Before and After the Hartz Reforms: The Performance of Active Labour Market Policy in Germany," RWI Discussion Papers 41, RWI - Leibniz-Institut für Wirtschaftsforschung.
    19. Hilmar Schneider, 2006. "Die Förderung der beruflichen Weiterbildung und ihre Reform," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 75(3), pages 85-96.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. Zimmermann, Klaus F., 2013. "Labor Market Reforms and the Great Recession," IZA Policy Papers 75, Institute of Labor Economics (IZA).
    5. 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.
    6. 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.
    7. Eichhorst, Werner, 2007. "Der Arbeitsmarkt in Deutschland: Zwischen Strukturreformen und sozialpolitischem Reflex," IZA Discussion Papers 3194, Institute of Labor Economics (IZA).
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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].
    14. Caliendo, Marco, 2009. "Income Support Systems, Labor Market Policies and Labor Supply: The German Experience," IZA Discussion Papers 4665, Institute of Labor Economics (IZA).
    15. 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.
    16. 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.

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    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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