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Potential duration of unemployment benefits and labor market outcomes for older workers with health impairments in Germany

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  • Inna Petrunyk
  • Christian Pfeifer

Abstract

This research note estimates the causal effects of a cut in the potential duration of regular unemployment benefits for older workers in Germany on the labor market outcomes of individuals with health impairments. The analyzed reform is a natural experiment that allows a difference‐in‐differences strategy with treatment intensity. The results provide evidence for a significant decrease in the number of days in regular unemployment benefits and an increase in the number of days in employment. However, the results also suggest a significant increase in the number of days in unemployment (social) assistance, which are granted upon exhaustion of regular unemployment benefits.

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  • Inna Petrunyk & Christian Pfeifer, 2023. "Potential duration of unemployment benefits and labor market outcomes for older workers with health impairments in Germany," Bulletin of Economic Research, Wiley Blackwell, vol. 75(1), pages 111-118, January.
    • Handle: RePEc:bla:buecrs:v:75:y:2023:i:1:p:111-118
    DOI: 10.1111/boer.12343
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    References listed on IDEAS

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    1. Inna Petrunyk & Christian Pfeifer, 2018. "Shortening the potential duration of unemployment benefits and labor market outcomes: Evidence from a natural experiment in Germany," Working Paper Series in Economics 377, University of Lüneburg, Institute of Economics.
    2. Hunt, Jennifer, 1995. "The Effect of Unemployment Compensation on Unemployment Duration in Germany," Journal of Labor Economics, University of Chicago Press, vol. 13(1), pages 88-120, January.
    3. Stephan Dlugosz & Gesine Stephan & Ralf A. Wilke, 2014. "Fixing the Leak: Unemployment Incidence before and after a Major Reform of Unemployment Benefits in Germany," German Economic Review, Verein für Socialpolitik, vol. 15(3), pages 329-352, August.
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