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Extended benefit entitlement periods and the duration of unemployment in West Germany

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Author Info
Steiner, Viktor
Abstract

Germany1, as most other European countries, has been plagued by a persistently high level of long?term unemployment since the early 1980's. In contrast, long? term unemployment is much less of a problem in the United States. One potential reason for the different structure of unemployment relates to institutional differences in unemployment compensation systems. The German system is characterized by relatively high income?replacement ratios and extended benefit?entitlement periods which are often followed by the availability of open?ended unemployment or social assistance schemes. In contrast, unemployment insurance payments in the United States are terminated after about six months as a rule, and entitlement to subsequent welfare payments are only available to lone mothers and the disabled. Can these institutional differences explain the higher level of long?term unemployment in Germany relative to the United States?

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File URL: http://hdl.handle.net/10419/24239
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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 97-14.

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Date of creation: 1997
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Handle: RePEc:zbw:zewdip:5119

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-82, July. [Downloadable!] (restricted)
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  2. Moffitt, Robert, 1985. "Unemployment insurance and the distribution of unemployment spells," Journal of Econometrics, Elsevier, vol. 28(1), pages 85-101, April. [Downloadable!] (restricted)
  3. Lippman, Steven A & McCall, John J, 1976. "The Economics of Job Search: A Survey," Economic Inquiry, Oxford University Press, vol. 14(3), pages 347-68, September.
  4. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December. [Downloadable!] (restricted)
  5. Meyer, Bruce D, 1995. "Natural and Quasi-experiments in Economics," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 151-61, April.
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  6. Wurzel,Eckhard, . "Staggered entry and unemployment durations - An application to german data," Discussion Paper Serie B 131, University of Bonn, Germany.
  7. Moffitt, Robert & Nicholson, Walter, 1982. "The Effect of Unemployment Insurance on Unemployment: The Case of Federal Supplemental Benefits," The Review of Economics and Statistics, MIT Press, vol. 64(1), pages 1-11, February. [Downloadable!] (restricted)
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  1. Carling, Kenneth & Holmlund, Bertil & Vejsiu, Altin, 1999. "Do benefit cuts boost job findings? Swedish evidence from the 1990s," Working Paper Series 1999:8, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
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  2. Wolfgang Franz, 1999. "Arbeitslosigkeit in Deutschland und Möglichkeiten ihrer Überwindung: Eine Bestandsaufnahme und Analyse aus der Sicht der wirtschaftspolitischen Beratung," Empirica, Springer, vol. 26(2), pages 151-167, June. [Downloadable!] (restricted)
  3. Schmidt, Christoph M, 1999. "Persistence and the German Unemployment Problem: Empirical Evidence on German Labour Market Flows," CEPR Discussion Papers 2057, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Hagen, Tobias, 2003. "Three Approaches to the Evaluation of Active Labour Market Policy in East Germany Using Regional Data," ZEW Discussion Papers 03-27, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  5. Reize, Frank, 2000. "Leaving unemployment for self-employment : a discrete duration analysis of determinants and stability of self-employment among former unemployed," ZEW Discussion Papers 00-26, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  6. Kraus, Florian & Puhani, Patrick A. & Steiner, Viktor, 1998. "Do public works programs work? : Some unpleasant results from the East German experience," ZEW Discussion Papers 98-07, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  7. Werner Eichhorst, 2007. "Von der Frühverrentung zum längeren Erwerbsleben: Transferleistungen, Arbeitsmarktpolitik und Weiterbildung," IZA Discussion Papers 3262, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Hendrik Schmitz & Viktor Steiner, 2007. "Benefit-Entitlement Effects and the Duration of Unemployment: An Ex-ante Evaluation of Recent Labour Market Reforms in Germany," Discussion Papers of DIW Berlin 678, DIW Berlin, German Institute for Economic Research. [Downloadable!]
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  9. Rafael Lalive & Jan van Ours & Josef Zweimüller, . "How changes in Financial Incentives Affect the Duration of Unemployment," IEW - Working Papers iewwp206, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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  10. Heer, Burkhard, 2000. "Employment and Welfare Effects of a Two-Tier Unemployment Compensation System," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  11. Franz, Wolfgang & Zimmermann, Volker, 1999. "Mobilität nach der beruflichen Ausbildung : eine empirische Studie für Westdeutschland," ZEW Discussion Papers 99-21, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  12. Launov, Andrey & Wolff, Joachim & Klasen, Stephan, 2004. "Unemployment Benefits and Unemployment Rates of Low-Skilled and Elder Workers in West Germany: A Search Equilibrium Approach," IZA Discussion Papers 1161, Institute for the Study of Labor (IZA). [Downloadable!]
  13. Steiner, Viktor & Wagner, Kersten, 1997. "Relative Earnings and the Demand for Unskilled Labor in West German Manufacturing," ZEW Discussion Papers 97-17, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  14. Franz, Wolfgang & Zimmermann, Volker, 2001. "Job shopping after vocational training? : An empirical analysis of the transition from apprenticeship training to work," ZEW Discussion Papers 01-64, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  15. Bernd Fitzenberger & Ralf A. Wilke, 2007. "New Insights on Unemployment Duration and Post Unemployment Earnings in Germany: Censored Box-Cox Quantile Regression at Work," IZA Discussion Papers 2609, Institute for the Study of Labor (IZA). [Downloadable!]
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  16. Klasen, Stephan & Woolard, Ingrid, 2001. "Surviving Unemployment without State Support: Unemployment and Household Formation in South Africa," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  17. Riphahn, Regina T., 1998. "Income and Employment Effects of Health Shocks - A Test Case for the German Welfare State," IZA Discussion Papers 10, Institute for the Study of Labor (IZA). [Downloadable!]
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