Active Labor Policy in Germany and Switzerland - a Confrontation (Aktive Arbeitsmarktpolitik in Deutschland Und Der Schweiz - Eine GegenüBerstellung)

University of St. Gallen, Department of Economics Discussion Paper Series No. 13-2006

63 Pages Posted: 5 Jun 2006

See all articles by Stefanie Behncke

Stefanie Behncke

IZA Institute of Labor Economics; Swiss National Bank

Markus Frölich

Universität Mannheim, Chair of Econometrics

Michael Lechner

University of St. Gallen - Swiss Institute for Empirical Economic Research

Date Written: May 2006

Abstract

The active labour market policies in Switzerland and Germany are compared. German and Swiss labour market policies have similar aims, instruments and experienced similar institutional reforms. In Switzerland, an informative administrative database for an evaluation of these policies was made available earlier. The evaluation studies for Switzerland are summarized. Positive effects are found particularly for temporary wage subsidies. These subsidies offer an incentive to accept lower paying jobs. Furthermore, the crucial roles of effect heterogeneity and programme allocation are discussed. By allocating individuals into those programmes with the highest expected benefits, unemployment could be reduced. Such a statistical targeting tool for selecting programmes has been implemented and tested in a pilot study in Switzerland. A similar system is currently developed in Germany. An informative database serves as the foundation for the evaluation and targeting of active labour market policies. Finally, the Swiss and German databases are described.

Keywords: Active labour market policies, evaluation, targeting, statistical treatment rules

JEL Classification: C21, J68

Suggested Citation

Behncke, Stefanie and Frölich, Markus and Lechner, Michael, Active Labor Policy in Germany and Switzerland - a Confrontation (Aktive Arbeitsmarktpolitik in Deutschland Und Der Schweiz - Eine GegenüBerstellung) (May 2006). University of St. Gallen, Department of Economics Discussion Paper Series No. 13-2006. Available at SSRN: https://ssrn.com/abstract=905786 or http://dx.doi.org/10.2139/ssrn.905786

Stefanie Behncke (Contact Author)

IZA Institute of Labor Economics ( email )

Bonn, D-53072

Swiss National Bank ( email )

Financial Stability
Bundesplatz 1
Bern, 3003
Switzerland

Markus Frölich

Universität Mannheim, Chair of Econometrics ( email )

L7, 3-5
68131 Mannheim
D-Mannheim, 68131
Germany

HOME PAGE: http://froelich.vwl.uni-mannheim.de

Michael Lechner

University of St. Gallen - Swiss Institute for Empirical Economic Research ( email )

Varnbuelstrasse 14
St. Gallen, 9000
Switzerland
+41 71 224 2320 (Phone)

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