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Can Decentralization Alleviate Labour Market Dysfunctions in Marginal Jurisdictions? Active Labour Market Policies in Nova Scotia and Saxony-Anhalt

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  • Rodney Haddow
  • Steffen G. Schneider
  • Thomas R. Klassen

Abstract

An influential discourse now promotes decentralization in the active labour market policy field. Drawing upon evidence from Nova Scotia and Saxony-Anhalt, two marginal jurisdictions within the Canadian and German federations, this article questions the decentralization argument. The institutional setting of policy making in these two jurisdictions differs in fundamental ways, but policy outcomes have been unsatisfactory because subnational governments in each region la ked the resources to exploit the particular advantages of their setting. Decent ralization may be workable in the active labour market field, but policymakers who wish to pursue it should first consider the kinds of obstacles, such as those identified here, that it can face.

Suggested Citation

  • Rodney Haddow & Steffen G. Schneider & Thomas R. Klassen, 2006. "Can Decentralization Alleviate Labour Market Dysfunctions in Marginal Jurisdictions? Active Labour Market Policies in Nova Scotia and Saxony-Anhalt," Canadian Public Policy, University of Toronto Press, vol. 32(3), pages 317-338, September.
    • Handle: RePEc:cpp:issued:v:32:y:2006:i:3:p:317-338
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    1. Esping-Andersen, Gosta, 1999. "Social Foundations of Postindustrial Economies," OUP Catalogue, Oxford University Press, number 9780198742005.
    2. Weingast, Barry R, 1995. "The Economic Role of Political Institutions: Market-Preserving Federalism and Economic Development," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 11(1), pages 1-31, April.
    3. Eichler, Martin & Lechner, Michael, 2002. "An evaluation of public employment programmes in the East German State of Sachsen-Anhalt," Labour Economics, Elsevier, vol. 9(2), pages 143-186, April.
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