Electoral Cycles in Active Labor Market Policies

22 Pages Posted: 26 Mar 2009 Last revised: 15 Jun 2011

See all articles by Mario Mechtel

Mario Mechtel

Leuphana University of Lueneburg

Niklas Potrafke

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Date Written: March 17, 2011

Abstract

We examine how electoral motives influence active labor market policies that promote job-creation. Such policies reduce unemployment statistics. Using German state data for the period 1985 to 2004, we show that election-motivated politicians pushed job-promotion schemes before elections.

Keywords: Political Business Cycles, Opportunistic Politicians, Active Labor Market Policies

JEL Classification: P16, J08, H72, E62, H61

Suggested Citation

Mechtel, Mario and Potrafke, Niklas, Electoral Cycles in Active Labor Market Policies (March 17, 2011). Available at SSRN: https://ssrn.com/abstract=1368225 or http://dx.doi.org/10.2139/ssrn.1368225

Mario Mechtel (Contact Author)

Leuphana University of Lueneburg ( email )

Scharnhorststra├če 1
Wilschenbrucher Weg 69
L├╝neburg, 21335
Germany
+4941316772636 (Phone)

HOME PAGE: http://www.mario-mechtel.de

Niklas Potrafke

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
Munich, 01069
Germany

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