Public Choice

, Volume 156, Issue 1, pp 181–194

Electoral cycles in active labor market policies

Article

DOI: 10.1007/s11127-011-9890-z

Cite this article as:
Mechtel, M. & Potrafke, N. Public Choice (2013) 156: 181. doi:10.1007/s11127-011-9890-z

Abstract

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.

Keywords

Political business cycles Opportunistic politicians Active labor market policies 

JEL Classification

P16 J08 H72 E62 H61 

Copyright information

© Springer Science+Business Media, LLC 2011

Authors and Affiliations

  1. 1.Faculty of Economics and Social SciencesEberhard Karls University TübingenTübingenGermany
  2. 2.Department of EconomicsUniversity of KonstanzKonstanzGermany