Publikation:

Political cycles in active labor market policies

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2009

Autor:innen

Mechtel, Mario

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MPRA Paper ; 14270

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http://nbn-resolving.de/urn:nbn:de:bsz:352-134414
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Zusammenfassung

This paper examines how electoral motives and government ideology influence active labor market policies (ALMP). We present a model that explains how politicians strategically use ALMP to generate political cycles in unemployment and the budget deficit. Election-motivated politicians increase ALMP spending before elections irrespective of their party ideology. Leftwing politicians spend more on ALMP than rightwing politicians. We test the hypotheses derived from our model using German state data from 1985:1 to 2004:11. The results suggest that ALMP (job-creation schemes) were pushed before elections.

Zusammenfassung in einer weiteren Sprache

Fachgebiet (DDC)
330 Wirtschaft

Schlagwörter

active labor market policies, political cycles, labor market expenditures, opportunistic politicians, partisan politicians

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ISO 690MECHTEL, Mario, Niklas POTRAFKE, 2009. Political cycles in active labor market policies
BibTex
@techreport{Mechtel2009Polit-13441,
  year={2009},
  series={MPRA Paper ; 14270},
  title={Political cycles in active labor market policies},
  author={Mechtel, Mario and Potrafke, Niklas}
}
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