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A Conceptual Framework for the Evaluation of Comprehensive Labor Market Policy Reforms in Germany

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  • Fertig, Michael
  • Kluve, Jochen

Abstract

Over the last year the German government has introduced a comprehensive set of labor market policy reforms, the so-called Hartz reforms, which aim at a significant reduction of unemployment. To this end, (a) many of the existing instruments of active labor market policy are modified considerably, (b) a set of new instruments is introduced, and (c) the administrative framework in which these measures operate is changed substantially. In order to be able to judge the success of these measures by the end of the current legislative period in mid-2006, the government has asked academic experts to set up an evaluation concept capable of generating reliable empirical evidence by that date. The task is therefore to develop a ready-to-implement concept for the evaluation of the full set of reforms in their entirety, as well as each instrument on its own, facing substantive constraints regarding data availability and a short time horizon. This paper presents such a concept.We discuss essential guidelines for an ideal evaluation design, conceptual and practical difficulties that arise in the context of evaluating the Hartz reforms, and ways to overcome these obstacles. After detailing the three main analytical steps ? analyses of effectiveness, efficiency, and implementation and process analysis ? we present the concrete evaluation design, specific methods applicable to particular instruments,and a sampling scheme for collecting the required data. In addition to the fact that our concept is directly implementable, it also has the advantage of being extensible for future evaluations.

Suggested Citation

  • Fertig, Michael & Kluve, Jochen, 2004. "A Conceptual Framework for the Evaluation of Comprehensive Labor Market Policy Reforms in Germany," RWI Discussion Papers 13, RWI - Leibniz-Institut für Wirtschaftsforschung.
    • Handle: RePEc:zbw:rwidps:13
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    References listed on IDEAS

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    8. Jochen Kluve & Christoph M. Schmidt, 2002. "Can training and employment subsidies combat European unemployment? [‘The non-parametric identification of treatment effects in duration models’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 17(35), pages 409-448.
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    2. Spermann, Alexander & Strotmann, Harald, 2005. "The Targeted Negative Income Tax (TNIT) in Germany: Evidence from a Quasi Experiment," ZEW Discussion Papers 05-68, ZEW - Leibniz Centre for European Economic Research.
    3. aus dem Moore, Nils & Kasten, Tanja & Schmidt, Christoph M., 2014. "Do Wages Rise when Corporate Taxes Fall? - Evidence from Germany's Tax Reform 2000," Ruhr Economic Papers 532, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. Helge Berger & Stephan Danninger, 2007. "The Employment Effects of Labor and Product Market Deregulation and Their Implications for Structural Reform," IMF Staff Papers, Palgrave Macmillan, vol. 54(3), pages 591-619, July.
    5. Arellano, Alfonso & Felgueroso, Florentino & Vazquez, Pablo & Gonzalez, Enrique, 2008. "Public-private partnerships in labour markets," IESE Research Papers D/744, IESE Business School.
    6. Mr. Helge Berger & Mr. Stephan Danninger, 2005. "Labor and Product Market Deregulation: Partial, Sequential, or Simultaneous Reform?," IMF Working Papers 2005/227, International Monetary Fund.
    7. Nils aus dem Moore & Tanja Kasten & Christoph M. Schmidt, 2014. "Do Wages Rise when Corporate Taxes Fall? - Evidence from Germany’s Tax Reform 2000," Ruhr Economic Papers 0532, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    8. Alfonso Arpaia & Gilles Mourre, 2012. "Institutions And Performance In European Labour Markets: Taking A Fresh Look At Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 26(1), pages 1-41, February.
    9. repec:zbw:rwirep:0532 is not listed on IDEAS
    10. Jacobi, Lena & Kluve, Jochen, 2006. "Before and After the Hartz Reforms: The Performance of Active Labour Market Policy in Germany," IZA Discussion Papers 2100, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Program Evaluation; Identification; Active Labor Market Policy; Policy Reform; Evaluation design;
    All these keywords.

    JEL classification:

    • J0 - Labor and Demographic Economics - - General

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