ABSTRACT
This chapter analyzes changes to Germany's labor market policy regime between 1980 and 2010. The analysis covers the classical labor market policy (LMP) programs like unemployment insurance (UI) and unemployment assistance (UA) benefits, as well as the various active labor market programs organized by the Federal Employment Agency (BA) to increase the supply of labor, create greater demand for labor, and calibrate supply with demand. Eurostat classifies active labor market measures in six broad categories, start-up incentives, employment incentives, job rotation and job sharing, direct job creation, integration of the disabled and, training. In the following sections, gradual changes to the formal rules and the institutional practice in the structure and the access to LMP and gradual changes in the financing and governance arrangements at the meta-level is analyzed in detail.
