State-aided employment is considered if in case of unemployment the integration into regular jobs fails due to regional labour market conditions or individual characteristics of the unemployed. For many measures of state-aided employment (e. g. so called Arbeitsgelegenheiten and Arbeitsbeschaffungs¬maßnahmen according to the Social Security Code II and III, or jobs within the framework of the federal program Kommunal-Kombi) legislation requires that these must be additional, for the public benefit and must not affect the economy. An analysis of these criteria shows that their simultaneous fulfilment is not trivial and that – due to imperfect information – their practical verification is normally rather inadequate. The study of the Ifo Institute examined which pragmatic procedures help the local decision makers – in particular the job centres – to warrant that state-aided employment measures fulfil these requirements. A strong focus is put on the adoption of documents of compliance in the forefront of labour market policy measure, which is common in Saxony. In comprehensive interviews with job centres, issuers of documents of compliance, regional branches of the Federal Employment Office and the respective federal ministries for the first time the wide array of testing mechanisms that has developed in practice as result of the decentralization of decision-making power for employment measurements is captured in detail.
Engelmann, S., B. Schirwitz and M.Thum (2009): Erstellung von Unbedenklichkeitsbescheiningungen im Bereich öffentlich geförderter Beschäftigung, ifo Dresden Studie 47, Munich/Dresden. (Abstract in German)
Engelmann, S. and B. Schirwitz (2009): „Unbedenklichkeitsbescheinigungen für Maßnahmen öffentlich geförderter Beschäftigung in Sachsen – Ergebnisse einer Umfrage“, in: ifo Dresden berichtet 02/2009, p. 03-12. (Download, PDF, 132).
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