Before and after the Hartz reforms: The performance of active labour market policy in Germany

Lena Jacobi and Jochen Kluve

Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, 2007, vol. 40, issue 1, 45-64

Abstract: "Having faced high unemployment rates for more than a decade, the German government implemented a comprehensive set of labour market reforms during the period 2003-2005. This paper describes the economic and institutional context of the German labour market before and after these so-called Hartz reforms. Focussing on active policy measures, we delineate the rationale for reform and its main principles. As preliminary results of programme evaluation studies post-reform have become available just now, we give a first assessment of the effectiveness of key elements of German active labour market policy before and after the Hartz reforms. The evidence indicates that the re-organisation of public employment services was mainly successful, with the exception of the outsourcing of services. Re-designing training programmes seems to have improved their effectiveness, while job creation schemes continue to be detrimental for participants' employment prospects. Wage subsidies and start-up subsidies show significantly positive effects. On balance, therefore, the reform seems to be moving the German labour market in the right direction." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Bundesagentur für Arbeit; Deregulierung; Erfolgskontrolle; Existenzgründungszuschuss; Hartz-Reform; aktivierende Arbeitsmarktpolitik; Lohnsubvention; Organisation; Arbeitsbeschaffungsmaßnahme; Arbeitsmarktpolitik; Weiterbildungsförderung; 2004-2006 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (159)

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