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Mechtel, Mario; Potrafke, Niklas (2013): Electoral cycles in active labor market policies. In: Public Choice, Vol. 156, No. 1-2: pp. 181-194

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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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