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An Evaluation of German Active Labor Market Policies and its Entrepreneurship Promotion

Author

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  • Moritz Zöllner

    () (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Michael Fritsch

    () (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Michael Wyrwich

    () (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

Abstract

This paper reviews the results of studies that investigate the most important active labour market policy (ALMP) measures in Germany. A particular focus is on programs devoted to foster entrepreneurship which can make important contributions to a country's growth and social welfare. The available evidence suggests that most ALMP measures increase labour market prospects of the participants. Evaluations of the entrepreneurship promotion activities show high success rates as well as high cost efficiency. The bulk share of participants of entrepreneurship measures is still self-employed after several years and nearly one third of these businesses had at least one employee. We mention problems regarding the evaluation of previous programs and highlight future challenges of German ALMP.

Suggested Citation

  • Moritz Zöllner & Michael Fritsch & Michael Wyrwich, 2016. "An Evaluation of German Active Labor Market Policies and its Entrepreneurship Promotion," Jena Economic Research Papers 2016-022, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2016-022
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    Cited by:

    1. Naudé, Wim & Nagler, Paula, 2017. "Technological Innovation and Inclusive Growth in Germany," IZA Discussion Papers 11194, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Active labour market policy; evaluations; effectiveness; entrepreneurship;

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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