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Economic Cooperation and Development

In general, several measures are implemented to support the connection between the education system and the labor market. Unfortunately, little effort has been undertaken to evaluate all these different types of active labor market policies for youth in Germany. However, existing evidence reveal positive long and short run employment effects for measures that focus on job assistance and training, while public job creation has counterproductive effects. Subsidies might trigger negative indirect crowding-out effects that counteract their positive direct impact on youth labor markets. 4 Eichhorst, Wozny and Cox • Despite the minimum wage, with its exceptions that mostly affect young people, there are no major differences in the German employment law for young and older people. This is why there is no general difference in the employment protection or unemployment assistance legislation with regard to age. However, by taking a closer look at fixed-term contracts among young people, it becomes clear that this group is more affected by temporary employment than older age cohorts. • Social assistance differs for young people. As long as benefit recipients live in their parents’ house, they receive a lower amount of social assistance. Furthermore, if a benefit recipient under 25 years old wants to move out, he/she needs the approval of local authorities so that he/she still obtains the benefits to finance his/her own flat. • Currently, the general favorable situation on the German labor market enables policy makers to focus more on rather specific subgroups, like disadvantaged or potential academics, instead of youth in general. Independently of the question wheatear the dual vocational scheme is responsible for low levels of youth unemployment, the current situation in Germany enables policy makers to diminish one of its main drawbacks, namely the freedom to choose between educational paths.