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Discretionary Measures of Active Labor Market Policy: The German Employment Promotion Reform in Perspective

Author

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  • Fertig, Michael

    () (ISG, Cologne)

  • Schmidt, Christoph M.

    () (RWI)

Abstract

This paper provides a preliminary assessment of recent reforms of German employment promotion policy. While several recent studies analyze the impact of measures of employment promotion for the case of Germany, no comparable study exists on the aggregate level, thus precluding any assessment of the overall impact of such measures. The reform of 1998 recognized for the first time in the history of German employment promotion that evaluation should be an integral part of the delivery of policy interventions. Yet, while this has led to an important first step - the systematic collection of data - evaluation itself has mistakenly been understood by the legislator as a pure accounting exercise. We discuss this problem from the perspective of the recent evaluation literature in economics and statistics, thus providing a frame of reference for performing credible scientific evaluation of employment promotion policy.

Suggested Citation

  • Fertig, Michael & Schmidt, Christoph M., 2000. "Discretionary Measures of Active Labor Market Policy: The German Employment Promotion Reform in Perspective," IZA Discussion Papers 182, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp182
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    References listed on IDEAS

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    1. Haisken-DeNew, John P. & Schmidt, Christoph M., 1999. "Industry Wage Differentials Revisited: A Longitudinal Comparison of Germany and USA (1984-1996)," IZA Discussion Papers 98, Institute for the Study of Labor (IZA).
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    Cited by:

    1. Hujer, Reinhard & Thomsen, Stephan L., 2006. "Wirksamkeit von Arbeitsbeschaffungsmaßnahmen in Deutschland : empirische Befunde mikroökonometrischer Analysen (Effectiveness of job creation schemes in Germany : empirical findings from microeconomet," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(3/4), pages 329-345.
    2. Fitzenberger, Bernd & Furdas, Marina & Sajons, Christoph, 2016. "End-of-year spending and the long-run employment effects of training programs for the unemployed," Freiburg Discussion Papers on Constitutional Economics 16/08, Walter Eucken Institut e.V..
    3. Fertig, Michael & Jacobi, Lena & Kluve, Jochen & Schaffner, Sandra & Schmidt, Christoph M. & Schumacher, Peter Michael & Tamm, Marcus & Apel, Helmut & Friedrich, Werner & Hägele, Helmut & Buscher, Her, 2006. "Evaluation der Umsetzung der Vorschläge der Hartz-Kommission. Arbeitspaket 1, Modul 1f. Teil 2: Benchmarking und makroökonomische Analysen," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 70876.
    4. Hagen, Tobias, 2003. "Three Approaches to the Evaluation of Active Labour Market Policy in East Germany Using Regional Data," ZEW Discussion Papers 03-27, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    5. Andersson, Frederik & Konrad, Kai A., 2001. "Globalization and human capital formation
      [Globalisierung und Humankapitalinvestitionen]
      ," Discussion Papers, Research Unit: Market Processes and Governance FS IV 01-01, Social Science Research Center Berlin (WZB).
    6. Michael Fertig, 2004. "The Effectiveness of Qualification Measures for Employed Workers – An Evaluation Study for Saxony," RWI Discussion Papers 0010, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    7. repec:iab:iabzaf:v:39:i:3/4:p:329-345 is not listed on IDEAS
    8. Fertig, Michael, 2004. "The Effectiveness of Qualification Measures for Employed Workers – An Evaluation Study for Saxony," IZA Discussion Papers 1205, Institute for the Study of Labor (IZA).
    9. Fertig, Michael & Schmidt, Christoph M. & Schneider, Hilmar, 2006. "Active labor market policy in Germany--Is there a successful policy strategy?," Regional Science and Urban Economics, Elsevier, vol. 36(3), pages 399-430, May.
    10. Reinhard Hujer & Uwe Blien & Marco Caliendo & Christopher Zeiss, 2006. "Macroeconometric Evaluation of Active Labour Market Policies in Germany. A Dynamic Panel Approach Using Regional Data," AIEL Series in Labour Economics,in: Floro Ernesto Caroleo & Sergio Destefanis (ed.), The European Labour Market. Regional Dimensions, edition 1, chapter 14, pages 287-309 AIEL - Associazione Italiana Economisti del Lavoro.
    11. Christoph M. Schmidt, 2000. "Arbeitsmarktpolitische Massnahmen und ihre Evaluierung: eine Bestandsaufnahme," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 69(3), pages 425-437.
    12. Fertig, Michael, 2004. "The Effectiveness of Qualification Measures for Employed Workers - An Evaluation Study for Saxony," RWI Discussion Papers 10, RWI - Leibniz-Institut für Wirtschaftsforschung.
    13. repec:zbw:rwidps:0010 is not listed on IDEAS
    14. Hujer, Reinhard & Thomsen, Stephan L., 2006. "Wirksamkeit von Arbeitsbeschaffungsmaßnahmen in Deutschland: Empirische Befunde mikroökonometrischer Analysen," ZEW Discussion Papers 06-054, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    15. Betcherman, Gordon & Olivas, Karina & Dar, Amit, 2004. "Impacts of active labor market programs : new evidence from evaluations with particular attention to developing and transition countries," Social Protection and Labor Policy and Technical Notes 29142, The World Bank.
    16. Czarnitzki, Dirk, 2001. "Die Auswirkung der Forschungs- und Technologiepolitik auf die Innovationsaktivitäten ostdeutscher Unternehmen," ZEW Discussion Papers 01-05, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

    More about this item

    Keywords

    observational studies; Sozialgesetzbuch; evaluation;

    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
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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