Federalism and Labour Market Policy in Germany and Canada: Exploring the Path Dependency of Reforms in the 1990s

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Authors

Klassen, Thomas R.

Date

2001

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working paper

Language

en

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Research Projects

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Abstract

In Canada, national and provincial experiments with corporatist measures along the lines of the traditional German model of social partnership were quickly abandoned, followed by drastic and extraordinary decentralization of active labour market policy. In Germany, by contrast, decentralization efforts remained minor and faltering, while corporatist arrangements were rejuvenated by both the national and Länder (state) governments. Furthermore, while the Canadian reforms entailed substantial changes to the federal distribution of responsibilities and to the institutional framework of active labour market policy, the organizational and legal basis of German labour market policy has remained largely intact. In this paper we begin by analyzing developments in German and Canadian labour market policy over the last ten years (1991-2000). We then examine why the two federations have chosen different reform paths and discuss some of the theoretical implications of our findings. In our conclusion we examine how well the reforms have prepared Germany and Canada for the next recession.

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© IIGR, Queen's University

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Queen's University Institute of Intergovernmental Relations

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