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Unemployment compensation and unemployment duration - Evidence from the German Hartz IV reform

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  • Kloß, Michael
  • Nagl, Wolfgang

Abstract

In 2005, the unemployment compensation for long-term unemployed was reduced in Germany. We examine how this reform affected the transition probability to employment. Additionally, we inspect how this effect varies over unemployment duration. We estimate proportional hazard models using German administrative spell data. According to our results the reform has raised the transition probability of short-term unemployed. The effect is even higher, the longer the unemployment duration. However, the results for long-term unemployed are inconclusive. --

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Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order with number 79711.

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Date of creation: 2013
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Handle: RePEc:zbw:vfsc13:79711

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  11. Fahr, René & Sunde, Uwe, 2009. "Did the Hartz Reforms Speed-Up the Matching Process? A Macro-Evaluation Using Empirical Matching Functions," Munich Reprints in Economics 20482, University of Munich, Department of Economics.
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  14. Dlugosz, Stephan & Stephan, Gesine & Wilke, Ralf A., 2009. "Fixing the leak: Unemployment incidence before and after the 2006 reform of unemployment benefits in Germany," IAB Discussion Paper 200925, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  15. Scioch, Patrycja & Oberschachtsiek, Dirk, 2009. "Testing the importance of cleansing procedures for overlaps inadministrative data : first evidence for Germany," FDZ Methodenreport 200903_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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