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Mechtel, Mario and Potrafke, Niklas (2011): Electoral Cycles in Active Labor Market Policies. University of Tübingen working papers in economics and finance,

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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.

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