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An evaluation of German active labour market policies: a review of the empirical evidence

Moritz Zoellner (School of Economics and Business Administration, University of Jena, Jena, Germany)
Michael Fritsch (School of Economics and Business Administration, University of Jena, Jena, Germany)
Michael Wyrwich (Faculty of Economics and Business, University of Groningen, Groningen, The Netherlands)

Journal of Entrepreneurship and Public Policy

ISSN: 2045-2101

Article publication date: 5 November 2018

Issue publication date: 5 November 2018

Abstract

Purpose

The purpose of this paper is to review the results of studies that investigate the most important active labour market policy (ALMP) measures in Germany. A focus is also on programmes devoted to foster entrepreneurship which can make important contributions to a country’s growth and social welfare.

Design/methodology/approach

The study relies on quantitative and qualitative assessments and a comparison of results of previous studies on ALMPs.

Findings

The available evidence suggests that most ALMP measures increase labour market prospects of the participants. In particular, evaluations of the entrepreneurship promotion activities show high success rates as well as high cost efficiency. The bulk share of participants of entrepreneurship measures is still self-employed after several years and nearly one-third of these businesses had at least one employee. The authors mention problems regarding the evaluation of previous programmes and highlight future challenges of German ALMP.

Originality/value

This is the first study on ALMP that has an extensive and explicit focus on entrepreneurship-promoting programs.

Keywords

Acknowledgements

The authors gratefully acknowledge support by Javier Changoluisa in all stages of the preparation of this report. Jacob Jordaan and Erik Stam provided very helpful comments on an earlier version of the text.

Citation

Zoellner, M., Fritsch, M. and Wyrwich, M. (2018), "An evaluation of German active labour market policies: a review of the empirical evidence", Journal of Entrepreneurship and Public Policy, Vol. 7 No. 4, pp. 377-410. https://doi.org/10.1108/JEPP-D-18-00023

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited