The macroeconomic impact of active labor market policy : a longitudinal analysis for regional labor markets

Abstract

"This paper investigates the causal effect of regional variation in active labor market policy utilizing data for 176 German employment offices and a period covering 2000-2004. In this endeavor, we also analyze the impact of the recent labor market reforms ('Hartz reforms'). We use flow measures of the labor market as outcomes in a fixed-effects panel model at the level of 91 regional labor markets, which are constructed in an auxiliary step. Data from a survey of all employment offices are analyzed to justify our identification strategy. Empirical results suggest that most policy measures do not exhibit a significant impact on net flows out of (long-term) unemployment and that there are only minor differences between the years before and after the Hartz reforms." (Author's abstract, IAB-Doku) ((en))

Cite article

Fertig, M., Kluve, J. & Schmidt, C. (2006): Die makroökonomische Wirkung aktiver Arbeitsmarktpolitik. Eine Panelanalyse auf Ebene regionaler Arbeitsmärkte. In: Zeitschrift für ArbeitsmarktForschung, Vol. 39, No. 3/4, p. 575-601.