Electoral Cycles in Active Labor Market Policies
22 Pages Posted: 26 Mar 2009 Last revised: 15 Jun 2011
Date Written: March 17, 2011
We examine how electoral motives influence active labor market policies that promote job-creation. Such policies reduce unemployment statistics. 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
Suggested Citation: Suggested Citation