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Did the Hartz Reforms Speed-Up Job Creation? A Macro-Evaluation Using Empirical Matching Functions

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Author Info

  • Fahr, René

    ()
    (University of Paderborn)

  • Sunde, Uwe

    ()
    (University of Munich)

Abstract

Starting in January 2003, Germany implemented the first two so-called Hartz reforms, followed by the third and fourth packages of Hartz reforms in January 2004 and January 2005, respectively. The aim of these reforms was to accelerate labor market flows and reduce unemployment duration. Without attempting to evaluate the specific components of these Hartz reforms, this paper provides a first attempt to evaluate the overall effectiveness of the first two reform waves, Hartz I/II and III, in speeding up the matching process between unemployed and vacant jobs. The analysis is conceptually rooted in the flow-based view underlying the reforms, estimating the structural features of the matching process. The results indicate that the reforms indeed had an impact in making the labor market more dynamic and accelerating the matching process.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2470.

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Length: 37 pages
Date of creation: Nov 2006
Date of revision:
Handle: RePEc:iza:izadps:dp2470

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Related research

Keywords: stock-flow matching; empirical matching function; Hartz reform;

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Cited by:
  1. Gianmarco I. P. Ottaviano & Francesco D’Amuri & Giovanni Peri, 2008. "The Labor Market Impact of Immigration in Western Germany in the 1990’s," Working Papers 2008.16, Fondazione Eni Enrico Mattei.
  2. Konle-Seidl, Regina, 2008. "Changes in the governance of employment services in Germany since 2003," IAB Discussion Paper 200810, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  3. O'Connell, Philip J. & McGuinness, Seamus & Kelly, Elish, 2010. "A Statistical Profiling Model of Long-Term Unemployment Risk in Ireland," Papers WP345, Economic and Social Research Institute (ESRI).
  4. Gill, Indermit & Koettl, Johannes & Packard, Truman, 2013. "Full Employment: A Distant Dream for Europe," IZA Discussion Papers 7663, Institute for the Study of Labor (IZA).
  5. Philip J. O’Connell & Seamus Mcguinness & Elish Kelly, 2012. "The Transition from Short- to Long-Term Unemployment: A Statistical Profiling Model for Ireland," The Economic and Social Review, Economic and Social Studies, vol. 43(1), pages 135–164.

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