Regionalization of active labour market policies - an aggregat impact analysis
Since 1998 most programmes of active labour market policy are financed from a general budget by the regional labour market offices. Here, a mixture of different measures is implemented according to the regional needs. The aim of this decentralisation is the improvement of effectiveness. To give a tentative overview of their strategies and success, the local offices are obliged to state a so-called balance of integration ('Eingliederungsbilanz') yearly. One of the core indicators is the so-called employmentstatusrate, which indicates the percentage of participants, who are not registered unemployed 6 months after leaving the measurement. In a panel analysis with fixed regional effects we estimate the impact of the regional labour market conditions by controlling the structure of participants. The data base covers all German labour market districts starting from 1998 to 2000. We show for public jobcreation schemes and training measures that the main determinant of integration of participants is the regional joblessrate and the share of the service sector in the economy. Furthermore, there is a negative impact of the adjusted regional wage on the success of programmes. Finally, a higher share of women leads to lower success in Eastern Germany whereas it is vice versa in Western Germany. We conclude that this is connected with higher labour force participation of women in Eastern Germany.
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