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From job creation and qualification schemes to activation strategies: the history of Germany’s labor market policy

Publication Type : Journal Article

Thematic Areas : Amrita Center for Economics and Governance (ACEG)

Publisher : Center for Economics & Governance, Amrita University,

Source : Center for Economics & Governance, Amrita University, Kollam, India (2018)

Url : https://www.tandfonline.com/doi/abs/10.1080/0023656X.2019.1533743

Campus : Amritapuri

School : School of Business

Center : Amrita Center for Economics & Governance (ACEG)

Department : Department of Management, Economics & Governance

Year : 2018

Abstract : With the implementation of the activation approach, formulated by the American political scientist Lawrence Mead and the British sociologist Anthony Giddens, the labor market policy has been reformed in Germany and many other industrialized countries, since the mid-1990s. A fundamental component of the realignment is that welfare payments are tied more strictly than previously to the acceptance of employment. While in the U.S.A., the new labor market policy is characterized by the ‘workfare’ motto, in Germany, the foundations of the activation are formulated with the guiding principle ‘support and demand’. Nevertheless, due to the shortage of public funds subsidies were cut sharply in recession phases but not increased adequately during the periods of economic recovery. As a result, the promotional elements of the activation concept are far outweighed by enforcement measures, leaving the unemployed to accept less attractive non-standard work. However, even with favorable economic conditions, even a relatively small number of atypical employees successfully made the transition to regular full-time employment. Therefore, in order to facilitate career advancement additional support would be required, which will not end with the recruitment.

Cite this Research Publication : Dr. Peter Holzschuh, “From job creation and qualification schemes to activation strategies: the history of Germany’s labor market policy”, Center for Economics & Governance, Amrita University, Kollam, India, 2018.

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