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Should Welfare Administration be Centralized or Decentralized? Evidence from a Policy Experiment

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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. Com-pared 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 aspects of internal organization common to both types of agencies.
   
type journal paper
   
keywords Welfare System, Organization, Decentralization, Labor Market Integration
   
project Evaluation der Experimentierklausel nach §6c SGB II – Vergleichende Evaluation des arbeitsmarktpolitischen Erfolgs der Modelle der Aufgabenwahrnehmung „Optierende Kommune“ und „Arbeitsgemeinschaft“ Untersuchungsfeld 3: „Wirkungs- und Effizienzanalyse“
language English
kind of paper journal article
date of appearance 2014
journal German Economic Review
publisher Wiley-Blackwell (Oxford UK)
ISSN 1465-6485
ISSN (online) 1468-0475
DOI 10.1111/geer.12021
volume of journal 2014
number of issue early view / forthcoming
page(s) 1-30
review double-blind review
   
citation Huber, M. (2014). Should Welfare Administration be Centralized or Decentralized? Evidence from a Policy Experiment. German Economic Review, 2014(early view / forthcoming), 1-30, DOI:10.1111/geer.12021.