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Electoral cycles in active labor market policies

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  • Mechtel, Mario
  • Potrafke, Niklas

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.

Suggested Citation

  • Mechtel, Mario & Potrafke, Niklas, 2013. "Electoral cycles in active labor market policies," Munich Reprints in Economics 19249, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:19249
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    More about this item

    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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