Should welfare administration be centralized or decentralized? Evidence from a policy experiment

Bernhard Boockmann (), Stephan Thomsen, Thomas Walter, Christian Göbel and Martin Huber

No 10-106, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

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 of organizations. Compared to centralized organization, decentralized organization of welfare administration has a negative effect on the transition of male welfare recipients to self-sufficient employment, but it does not affect employment in combination with continuing welfare support. No significant effects were found for women.

Keywords: Welfare System; Organization; Decentralization; Labor Market Integration (search for similar items in EconPapers)
JEL-codes: C31 I38 J64 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Should Welfare Administration be Centralized or Decentralized? Evidence from a Policy Experiment (2015)
Journal Article: Should Welfare Administration be Centralized or Decentralized? Evidence from a Policy Experiment (2015)
Working Paper: Should Welfare Administration be Centralized or Decentralized? Evidence from a Policy Experiment (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:10106

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