Unemployment and labour market policies: a comparative analysis of Belgium and Germany

Abstract

The goal of this thesis is to do a comparative analysis of the effects of labour market policies on unemployment. The two countries of comparison are Belgium and Germany. The aim is to take studies that have been done so far and to compare their results for both countries. Therefore, some reasons for the existence of unemployment will be presented, before moving to a description of several labour market policies, which include unemployment compensation schemes. Then, the effects of unemployment benefits will be discussed in a more detailed way, especially in the case of a reduction in the duration and the generosity of unemployment benefits. Although most policies seem to have similar effects in Belgium and Germany, some heterogeneities persist. Some policies have a stronger impact on unemployment than others, and in some cases, differences within the groups of the unemployed can be identified. All in all, however, it can be seen that the effects of the labour market policies are mostly in line with what is predicted by the literature. Being a broad and complex topic, the elements presented in this thesis are not exhaustive. The framework of this work would otherwise have been exceeded.