Electoral cycles in active labor market policies |
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Authors: | Mario Mechtel Niklas Potrafke |
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Affiliation: | 1. Faculty of Economics and Social Sciences, Eberhard Karls University Tübingen, Melanchthonstr. 30, 72074, Tübingen, Germany 2. Department of Economics, University of Konstanz, Box 138, 78457, Konstanz, Germany
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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. |
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