Working Paper: CEPR ID: DP6246
Authors: Werner Eichhorst; Klaus F. Zimmermann
Abstract: Through the Hartz reforms, German active labour market policy was fundamentally restructured and has since been systematically evaluated. This paper reviews the recent evaluation findings and draws some conclusions for the future setup of active labour market policies in Germany. It argues in favour of a reduced range of active labour market policy schemes focusing on programs with proven positive effects (that are wage subsidies, training, start-up grants and placement vouchers) and calls for a systematic evaluation of all instruments not scrutinized so far.
Keywords: Active Labour Market Policy; Evaluation; Germany
JEL Codes: D61; H43; J68
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| wage subsidies (J38) | deadweight loss (H21) |
| active labor market policies (J48) | employment outcomes (J68) |
| placement vouchers (I22) | employment outcomes (J68) |
| sponsored further training programs (M53) | employment opportunities (J68) |