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

Research output: Contribution to journalArticleResearchpeer review

Authors

  • Bernhard Boockmann
  • Stephan L. Thomsen
  • Thomas Walter
  • Christian Göbel
  • Martin Huber

Research Organisations

External Research Organisations

  • Institute for Applied Economic Research IAW
  • Centre for European Economic Research (ZEW)
  • University of St. Gallen (HSG)
  • Lower Saxony Institute of Economic Research (NIW)
  • University of Applied Labour Studies of the Federal Employment Agency (HdBA)
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Details

Original languageEnglish
Pages (from-to)13-42
Number of pages30
JournalGerman economic review
Volume16
Issue number1
Publication statusPublished - 1 Feb 2015

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.

Keywords

    Decentralization, Labor market integration, Organization, Welfare system

ASJC Scopus subject areas

Cite this

Should Welfare Administration be Centralized or Decentralized? Evidence from a Policy Experiment. / Boockmann, Bernhard; Thomsen, Stephan L.; Walter, Thomas et al.
In: German economic review, Vol. 16, No. 1, 01.02.2015, p. 13-42.

Research output: Contribution to journalArticleResearchpeer review

Boockmann B, Thomsen SL, Walter T, Göbel C, Huber M. Should Welfare Administration be Centralized or Decentralized? Evidence from a Policy Experiment. German economic review. 2015 Feb 1;16(1):13-42. doi: 10.1111/geer.12021
Boockmann, Bernhard ; Thomsen, Stephan L. ; Walter, Thomas et al. / Should Welfare Administration be Centralized or Decentralized? Evidence from a Policy Experiment. In: German economic review. 2015 ; Vol. 16, No. 1. pp. 13-42.
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