Path shifting and path dependence : labor market policy reforms under german federalism
By: KNUTH, Matthias
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Previously a laggard in labour market policy reforms, Germany has combined a fundamental change of its benefit system with a reorganization of its employment services since 2005. The reform has resulted in a hitherto unresolved constitutional dispute that calls the "joined-up" governance of employment and municipal welfare services into question. The article endeavors to explain this outcome and the reform's uncertain destiny in terms of a dynamic version of path dependence theory.
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