Choosing from the Reform Menu Card - Individual Determinants of Labour Market Policy Preferences
Centre for European Economic Research (ZEW)
University of Kassel
University of Mannheim - Department of Economics
ZEW - Centre for European Economic Research Discussion Paper No. 09-004
This contribution empirically explores the drivers of labor market reform acceptance for the individual level in Germany. For that purpose we make use of the representative German General Social Survey (ALLBUS). This survey offers data to which extent individuals support benefit cuts, longer working years, cutting subsidies to declining industries, phasing out of employment programmes or a liberalization of employment protection. Our theoretical considerations suggest that self-interest, information, fairness judgments, economic beliefs and other individual factors such as socialization under the communist regime in the former German Democratic Republic drive individual reform preferences. Our empirical results support this notion: While we find self-interest to be an important driving force, our results show that a number of factors well beyond the narrow scope of self-interest strongly shape individual reform preferences.
Number of Pages in PDF File: 27
Keywords: labour market reform, economic beliefs, fairness preferences, ALLBUS
JEL Classification: J48, D63, C42, A13working papers series
Date posted: April 23, 2009
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