Formula allocation: The regional allocation of budgetary funds for measures of active labour market policy in Germany

Uwe Blien () and Franziska Hirschenauer ()
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Franziska Hirschenauer: Institute of Employment Research of the Federal Employment Agency

Economics Bulletin, 2006, vol. 18, issue 7, 1-10

Abstract: A common problem of regional policy is the distribution of funds to regional units. To follow the specific purpose of this budgeting process in a rational way this is often done in a formula allocation on the basis of official statistics. In Germany, measures of active labour market policy – e.g. training measures, integration subsidies and job creation schemes – are paid from a common budget. For the allocation of these budgetary funds to the regions of the Federal Republic of Germany, a formula was developed which was to be based essentially on a labour market indicator. Here the procedure used in constructing the distribution process is explained and the distribution result for the year 2004 is set out.

JEL-codes: H0 R0 (search for similar items in EconPapers)
Date: 2006-12-10
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Citations: View citations in EconPapers (4)

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Working Paper: Formula allocation: the regional allocation of budgetary funds for measures of active labour market policy in Germany (2005)
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