Electoral cycles in active labor market policies
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- Mechtel, M. & Potrafke, N. Public Choice (2013) 156: 181. doi:10.1007/s11127-011-9890-z
We examine how electoral motives influence active labor market policies that promote (short term) job-creation. Such policies reduce measures of unemployment. Using German state data for the period 1985 to 2004, we show that election-motivated politicians pushed job-promotion schemes before elections.