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Comment on "Unemployment Compensation and Wages: Evidence from the German Hartz Reforms" by Stefan Arent and Wolfgang Nagl

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  • Ludsteck, Johannes
  • Seth, Stefan

Abstract

Arent and Nagl (2013) use the BA Employment panel 1998-2007 to identify effects of the German Hartz reform. Their findings suggest that the reform caused a considerable reduction of wages. Our replication of their study suggests that their clear and strong conclusions are driven by a too coarse modelling of the time effects. They become blurred and weak once the development of wages is investigated based on a finer time grid. Further methodological considerations put into question whether their models are well-suited to investigate the wage effects of the reform.

Suggested Citation

  • Ludsteck, Johannes & Seth, Stefan, 2013. "Comment on "Unemployment Compensation and Wages: Evidence from the German Hartz Reforms" by Stefan Arent and Wolfgang Nagl," MPRA Paper 50856, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:50856
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    References listed on IDEAS

    as
    1. David Card & Jörg Heining & Patrick Kline, 2013. "Workplace Heterogeneity and the Rise of West German Wage Inequality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(3), pages 967-1015.
    2. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    3. Wolfgang Nagl & Stefan Arent, 2012. "Unemployment Benefits and Wages: Evidence from the German Hartz-Reform," ERSA conference papers ersa12p78, European Regional Science Association.
    4. Arent Stefan & Nagl Wolfgang, 2013. "Unemployment Compensation and Wages: Evidence from the German Hartz Reforms," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(4), pages 450-466, August.
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    Cited by:

    1. Gianna C. Giannelli & Ursula Jaenichen & Thomas Rothe, 2016. "The evolution of job stability and wages after the implementation of the Hartz reforms [Die Entwicklung von Beschäftigungsstabilität und Löhnen seit Einführung der Hartz-Reformen]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(3), pages 269-294, November.
    2. Viktor Steiner, 2017. "The labor market for older workers in Germany [Der Arbeitsmarkt für ältere Arbeitnehmer in Deutschland]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 50(1), pages 1-14, August.
    3. Winker Peter, 2016. "Editorial Announcement," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(1), pages 1-2, February.

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    More about this item

    Keywords

    Hartz reforms; unemployment compensation; wages;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J8 - Labor and Demographic Economics - - Labor Standards

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