How to Fight Long-Term Unemployment: Lessons from Germany

31 Pages Posted: 4 Sep 2015

See all articles by Alexander Spermann

Alexander Spermann

Center for European Economic Research (ZEW); Albert-Ludwigs-Universität Freiburg; IZA Institute of Labor Economics

Abstract

The number of long-term unemployed in Germany has stagnated at around one million for several years. Despite excellent labour market conditions, the long-term unemployment rate is well above the OECD average. Therefore, the "carrot and stick" principle of Hartz reforms is in clear need of further development. The author proposes an overall concept for preventing and reducing long-term unemployment and long-term basic income receipt. An important element is an activation strategy for long-term unemployed and long-term basic income recipients that implies interim target setting and requires more and better trained case managers in the job centres.

Keywords: long-term unemployment, long-term basic income receipt, Germany, training programs, active labor market policy, activation

JEL Classification: J31, J38

Suggested Citation

Spermann, Alexander, How to Fight Long-Term Unemployment: Lessons from Germany. IZA Discussion Paper No. 9134, Available at SSRN: https://ssrn.com/abstract=2655083 or http://dx.doi.org/10.2139/ssrn.2655083

Alexander Spermann (Contact Author)

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Albert-Ludwigs-Universität Freiburg

Fahnenbergplatz
Freiburg, 79085
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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