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Formula allocation: The regional allocation of budgetary funds for measures of active labour market policy in Germany

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  • Uwe Blien

Abstract

In Germany, the funds for active labour market policy – e.g. training measures and job creation schemes – are paid from a common budget, the so-called integration title. For the allocation of budgetary funds (amounting to € 13 billion every year) to the regions of the Federal Republic of Germany, a formula was developed which was to be based essentially on a labour market indicator. A proposal for the method of distribution (including the indicator) was developed at the IAB. The criteria for the development were: most accurate fit to the legal guidelines of the Social Code, transparency of the procedure, openness for necessary policy decisions, scientific correctness in implementation, efficiency of the whole process. Here the procedure used in constructing the indicator is explained and the distribution result is set out. This was finally passed by the Executive Board and the Board of Governors of the Federal Employment Service and contains the necessary business policy weightings. The history of the implementation of the instrument for the distribution of resources is also dealt with briefly.

Suggested Citation

  • Uwe Blien, 2003. "Formula allocation: The regional allocation of budgetary funds for measures of active labour market policy in Germany," ERSA conference papers ersa03p211, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa03p211
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    Cited by:

    1. Zarth, Michael & Schnitzlein, Daniel D. & Bruckmeier, Kerstin, 2009. "Eine regionale Betrachtung der Sozialversicherung und raumwirksamer Bundesmittel: Wer partizipiert wie?," Forschungs- und Sitzungsberichte der ARL: Aufsätze, in: Mäding, Heinrich (ed.), Öffentliche Finanzströme und räumliche Entwicklung, volume 127, pages 105-134, ARL – Akademie für Raumentwicklung in der Leibniz-Gemeinschaft.
    2. Bruckmeier, Kerstin & Schwengler, Barbara, 2009. "The impact of federal social policies on spatial income inequalities in Germany : empirical evidence from social security data," IAB-Discussion Paper 200901, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Ulrike Unterhofer & Conny Wunsch, 2022. "Macroeconomic Effects of Active Labour Market Policies: A Novel Instrumental Variables Approach," Papers 2211.12437, arXiv.org.
    4. Blos, Kerstin & Schwengler, Barbara, 2007. "Arbeitsmarktpolitik: Regionale Einkommenseffekte der Arbeitsmarktreformen," IAB-Kurzbericht 200704, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Uwe Blien & Franziska Hirschenauer & Phan Thi Hong Van, 2010. "Classification of regional labour markets for purposes of labour market policy," Papers in Regional Science, Wiley Blackwell, vol. 89(4), pages 859-880, November.
    6. Laura Romeu Gordo, 2011. "Compression of morbidity and the labour supply of older people," Applied Economics, Taylor & Francis Journals, vol. 43(4), pages 503-513.
    7. Rudolph, Helmut, 2006. "Indikator gesteuerte Verteilung von Eingliederungsmitteln im SGB II : Erfolgs- und Effizienzkriterien als Leistungsanreiz?," IAB-Discussion Paper 200626, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. Hohendanner, Christian, 2007. "Verdrängen Ein-Euro-Jobs sozialversicherungspflichtige Beschäftigung in den Betrieben?," IAB-Discussion Paper 200708, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Kruppe, Thomas, 2006. "Die Förderung beruflicher Weiterbildung : eine mikroökonometrische Evaluation der Ergänzung durch das ESF-BA-Programm," IAB-Discussion Paper 200621, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    10. Blien, Uwe & Kirchhof, Kai & Ludewig, Oliver, 2006. "Agglomeration effects on labour demand," IAB-Discussion Paper 200628, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. Blos, Kerstin, 2006. "Die Bedeutung der Ausgaben und Einnahmen der Sozialversicherungssysteme für die Regionen in Deutschland," IAB-Forschungsbericht 200608, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    12. Eckey, Hans-Friedrich & Schwengler, Barbara & Türck, Matthias, 2007. "Vergleich von deutschen Arbeitsmarktregionen," IAB-Discussion Paper 200703, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    13. Taoufik Rajhi, 2014. "Working Paper - 215 - A Regional Budget Development Allocation Formula for Tunisia," Working Paper Series 2151, African Development Bank.

    More about this item

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • J00 - Labor and Demographic Economics - - General - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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