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Electoral Cycles in Active Labor Market Policies

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  • Mechtel, Mario
  • Potrafke, Niklas

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.

Suggested Citation

  • Mechtel, Mario & Potrafke, Niklas, 2011. "Electoral Cycles in Active Labor Market Policies," University of Tübingen Working Papers in Business and Economics 2, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    • Handle: RePEc:zbw:tuewef:2
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    More about this item

    Keywords

    political business cycles; opportunistic politicians; active labor market policies;
    All these keywords.

    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems

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