Abstract:
This article deals with the analysis of the - until now widely unrecognised - labour market activities of the
German Länder. In face of critical problems on the German labour market, steering difficulties by central
government and due to extended allocations of implementation tasks and financial resources from the EU,
the German Länder developed increasing activities in active labour market politics since the end of the
1980s. While the Federal Labour Office (Bundesanstalt für Arbeit; BA) which is generally responsible for
active measures in Germany, is restrained by the Labour Promotion Act (Arbeitsförderungs-gesetz /
Sozialgesetzbuch III) the labour market activities of the Länder are not subject to restrictive legislation.
Therefore, it can be assumed that the Länder compensate for inadequacies in BA policy by following new
paths and innovative strategies. This working paper targets to analyse the capacities and readiness for
policy innovation of the German Länder. In order to examine this, a catalogue of various indicators which
can denote innovative policies will be developed. Moreover, a typology of labour market strategies on
Länder level will be evolved. The empirical basis of the analysis are the labour market programmes of the
sixteen German Länder. In sum, it can be shown that the German Länder, in contrast to the Federal Labour
Office, reveal definite readiness for policy innovation. In doing so, they try to meet the demands of labour
market research and evaluation. Furthermore, the comparison between the Länder can also trace that they
respond widely different to the challenges of the labour market, with respect to their capacity for policy
innovation as well as regarding their general labour market and economic strategies. It can be presumed that
the reason for this can be found in the specific labour market conditions and financial capacities of the
single Länder. Other important variables within this context may be partisan influenc