Should Welfare Administration be Centralized or Decentralized? Evidence from a Policy Experiment
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Bernhard Boockmann
Abstract
The 2005 reform of the German welfare system introduced two competing organizational models for welfare administration. In most districts, a centralized organization was established where local welfare agencies are bound to central directives. At the same time, 69 districts were allowed to opt for a decentralized organization. We evaluate the relative success of both types in terms of integrating welfare recipients into employment. Compared to centralized organization, decentralized organization has a negative effect on employment chances of males. For women, no significant effect is found. These findings are robust to the inclusion of aspects of internal organization common to both types of agencies.
© 2019 by Walter de Gruyter Berlin/Boston
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Articles in the same Issue
- Looks Good, You’re Hired? Evidence from Extra-Parliamentary Activities of German Parliamentarians
- Should Welfare Administration be Centralized or Decentralized? Evidence from a Policy Experiment
- Do Long-Term Unemployed Workers Benefit from Targeted Wage Subsidies?
- Are We Spending Too Many Years in School? Causal Evidence of the Impact of Shortening Secondary School Duration
- Price Convergence and Information Efficiency in German Natural Gas Markets
- Within-Subject Intra- and Inter-Method Consistency of Two Experimental Risk Attitude Elicitation Methods
- Call for Papers: Special Issue of the German Economic Review in Honor of Reinhard Selten’s 85th birthday. Special Issue Editors