| Map of Germany | vii |
| List of Abbreviations | viii |
| Foreword | ix |
| Introduction: great transformations | 1 |
| The challenge of economic transition: from ALMP to the 'Social Contract' | 3 |
| Contribution of the book | 4 |
| Outline of the book | 6 |
Part I | Conceptual and methodological framework | |
1. | Unemployment, the labour market and the state | 9 |
| Neo-classical versus Keynesian perspective | 10 |
| Institutional, evolutionary and spatial perspectives | 13 |
2. | Equity, efficiency and the role of Active Labour Market Policy | 23 |
| Equity versus efficiency | 23 |
| Active Labour Market Policy: at the crossroads between economic and social policies | 26 |
| Conclusion | 36 |
Part II | Transformation unemployment In Eastern Germany and the tradition of ALMP | |
3. | Transformation unemployment in the East German Bundeslander | 39 |
| The collapse of the labour market | 39 |
| Job destruction: industrial and regional patterns | 50 |
| The social dimension | 53 |
| Transformation unemployment: a summary | 59 |
4. | The institutional architecture of ALMP in the Federal Republic of Germany | 63 |
| ALMP and the social market economy | 63 |
| Actors and instruments | 66 |
| Financing mechanisms | 72 |
| A short review of ALMP practice in the pre-1989 FRG | 77 |
| Conclusion | 81 |
Part III | ALMP in the new Bundeslander | |
5. | From 'policy of the first hour' to the 'second labour market' | 83 |
| The transfer of ALMP | 83 |
| Conclusion | 99 |
6. | ALMP in a regional context: a case study of Saxony | 101 |
| A survey of labour market trends in Saxony | 102 |
| Regional corporatism and other Active Labour Market Policy features | 105 |
| Industry, technology, culture and ecology: strength in diversity? | 112 |
| Conclusion: from the regional to the national debate | 115 |
Part IV | ALMP in perspective | |
7. | Constraints and opportunities facing the new German economy | 117 |
| Constraints on East Germany's economic development | 117 |
| Structural reforms in the German social market economy | 123 |
| Conclusion: strengthening the Eastern Standort and promoting national reforms | 132 |
8. | Employment and welfare restructuring: prospective avenues | 135 |
| Globalisation, the 'information' revolution, and the welfare state | 135 |
| Labour market and employment restructuring | 138 |
| Welfare restructuring | 143 |
| The social economy: harnessed to the knowledge economy | 147 |
| The social contract as an adjustment mechanism | 149 |
| Conclusion: the significance of the social contract | 152 |
| Conclusion: responding to labour market transitions | 155 |
| Appendixes | 159 |
Appendix 1 | Spending on ALMP according to types of measures (in million DM), East Germany, 1991-1997 | 159 |
Appendix 2 | Key data for East Germany's economic 'catching-up' (1991-1999) | 160 |
| Notes | 161 |
| Bibliography | 169 |
| Index | 191 |