Before and After the Hartz Reforms: The Performance of Active Labour Market Policy in Germany

Arbeitspapier

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 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 ALMP 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: RWI Discussion Papers ; No. 41

Classification and Topics

• Classification: Wirtschaft ; Labor Standards: Public Policy ; Mobility, Unemployment, and Vacancies: Public Policy
• Subject: Active labour market policy ; labour market reform ; programme evaluation ; Hartz laws

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Jacobi, Lena ; Kluve, Jochen
• Event: Veröffentlichung
• (who): Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
• (where): Essen
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/18592
• Last update: 10.03.2025, 11:41 AM CET