A Case Study about Microeconometric Evaluation of Active Labour Market Policy: Germany
Abstract: Most evaluation studies of active labour-market policies (ALMPs) focus on the microeconometric evaluation approach using individual data. However, as the microeconometric approach usually ignores impacts on non-participants, it should be seen only as a first step to a complete evaluation to be followed by analysis at macroeconomic level. Our study evaluates the impact of active labour-market programmes in Germany on the whole economy. The evaluation focuses on vocational training and additionally on subsidised employment programmes in order to compare them to vocational training. To do this we outline the institutional structure of ALMPs in Germany and conduct a theoretical discussion that enables us see how ALMP might influence the whole economy.
Executive summary: Our analysis starts with an overview of the institutional structure of ALMP in Germany. Labour-market policies in Germany are organised by the Federal Employment Service (Bundesanstalt f¸r Arbeit). Up to 1998, the legal basis for policy has been the work promotion act (Arbeitsfˆrderungsgesetz, AFG), established in 1969. From that point, the new social welfare code SGB III (Sozialgesetzbuch) took over this role. Changes have been made both in objectives, such as a more intensive focus on problem groups in the labour market, and also in the institutional organisation of labour-market policy, leading to decentralisation and more flexibility in the regional allocation of resources to different measures.
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