Exit Bismarck, Enter Dualism? Assessing Contemporary German Labour Market Policy

Between 2003 and 2005, German labour market policy was subjected to the most far-reaching reform since the 1960s. Some commentators have interpreted the changes introduced as signalling a departure from the traditional ‘Bismarckian’ paradigm in German social policy. For others, the new legislation has contributed and consolidated an ever-more pervasive trend of dualisation within the German welfare state. In this article, we contest both interpretations. First, we demonstrate that traditional social insurance principles remain a dominant element within unemployment protection. Second, we show that German labour market policy is less rather than more segmented today than it was a decade ago.