Electoral cycles in active labor market policies
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.
KeywordsPolitical business cycles Opportunistic politicians Active labor market policies
JEL ClassificationP16 J08 H72 E62 H61
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