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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.

Suggested Citation

  • 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. 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.
    3. 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.
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    Cited by:

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    2. Sebastian Camarero Garcia & Martin Murmann, 2025. "How unemployment benefit duration shapes startup motivation and growth," Small Business Economics, Springer, vol. 64(4), pages 1565-1600, April.

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