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



28


Lena Jacobi and Jochen Kluve

produced rich evidence giving the general impression that the effectiveness of
measures has modestly improved. The results, which are still preliminary at
the time being, indicate 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 ef-
fectiveness, while job creation schemes continue to be detrimental. Policy
measures such as the redesigned wage subsidies and start-up subsidies show
significantly positive effects. Thus, the new strategy, with more emphasis on
wage subsidies and start-up subsidies and less emphasis on training and public
job creation schemes, seems to be a promising mix of active labour market
policies, moving the German labour market in the right direction. It seems
clear, however, considering the continuing crisis of the German economy, that
further steps have to be taken.

References

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