published in: Perspektiven der Wirtschaftspolitik, 2006, 7 (3), 379-397
The German labor market reforms seem to be on the right track. However, they need to be adjusted especially on the organizational side to make them more effective. The labor market instruments can be concentrated on temporary company wage subsidies, training measures and financial incentives for business start-ups. It is essential to increase incentives, intensify competitive structures and to ensure clear-cut responsibilities.
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