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How to fight long-term unemployment: lessons from Germany

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  • Alexander Spermann

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 the 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. Jel codes: J31; J38 Copyright Spermann. 2015

Suggested Citation

  • Alexander Spermann, 2015. "How to fight long-term unemployment: lessons from Germany," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-15, December.
    • Handle: RePEc:spr:izalpo:v:4:y:2015:i:1:p:1-15:10.1186/s40173-015-0039-4
    DOI: 10.1186/s40173-015-0039-4
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    Cited by:

    1. Bernhard Boockmann & Tobias Brändle, 2015. "Integrating Older Employees into the Labour Market – Evidence from a German Labour Market Programme," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(3), pages 59-64, October.
    2. repec:ces:ifodic:v:13:y:2015:i:3:p:19172607 is not listed on IDEAS
    3. Tobias Brändle & Lukas Fervers, 2017. "Give it Another Try: What are the Effects of a Public Employment Scheme Especially Designed for Hard-to-Place Workers?," IAW Discussion Papers 129, Institut für Angewandte Wirtschaftsforschung (IAW).
    4. Tobias Brändle & Lukas Fervers, 2021. "Give it Another Try: What are the Effects of a Job Creation Scheme Especially Designed for Hard-to-Place Workers?," Journal of Labor Research, Springer, vol. 42(3), pages 382-417, December.
    5. Bernhard Boockmann & Tobias Brändle, 2015. "Integrating Older Employees into the Labour Market – Evidence from a German Labour Market Programme," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(03), pages 59-64, October.

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    More about this item

    Keywords

    Long-term unemployment; Long-term basic income receipt; Germany; Training programmes; Active labor market policy; Activation;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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