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New Insights into Unemployment Duration and Post Unemployment Earnings in Germany

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  • Bernd Fitzenberger
  • Ralf A. Wilke

Abstract

type="main" xml:lang="en"> Building on non-stationary search theory ( Mortensen, 1977 ; Van den Berg, 1990 ), this article estimates the effects of UB on unemployment durations and future earnings using unique administrative data in Germany. We apply censored Box–Cox quantile regression. Our results imply that the length of entitlement shows only a weak effect on unemployment duration for entitlement lengths up to 12 months and no effect on post unemployment earnings. There are noticeable effects on exits from unemployment for entitlement lengths above 12 months. A high wage replacement rate for low-wage earners is associated with a longer duration of unemployment and higher post unemployment earnings.

Suggested Citation

  • Bernd Fitzenberger & Ralf A. Wilke, 2010. "New Insights into Unemployment Duration and Post Unemployment Earnings in Germany," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(6), pages 794-826, December.
  • Handle: RePEc:bla:obuest:v:72:y:2010:i:6:p:794-826
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    File URL: http://hdl.handle.net/10.1111/j.1468-0084.2010.00597.x
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    References listed on IDEAS

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    Cited by:

    1. Bräuninger, Michael & Michaelis, Jochen & Sode, Madlen, 2013. "10 Jahre Hartz-Reformen," HWWI Policy Papers 73, Hamburg Institute of International Economics (HWWI).
      • Michael Bräuninger & Jochen Michaelis & Madlen Sode, 2013. "10 Jahre Hartz-Reformen," MAGKS Papers on Economics 201318, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Schröder, Carsten, 2012. "The sensitivity of distributional measures to the reference period of income," Kiel Working Papers 1777, Kiel Institute for the World Economy (IfW).
    3. Mário Centeno & Álvaro A. Novo, 2014. "Do Low-Wage Workers React Less to Longer Unemployment Benefits? Quasi-Experimental Evidence," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 76(2), pages 185-207, April.
    4. Thomas Rothe & Klaus Wälde, 2017. "Where Did All the Unemployed Go? Non-standard work in Germany after the Hartz reforms," Working Papers 1709, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    5. Amanda Talbot & Erica Tobe & Barbara Ames, 2015. "The Experience of Un-or Underemployment and Home Foreclosure for Mature Adults: A Phenomenological Approach," Journal of Family and Economic Issues, Springer, vol. 36(4), pages 503-513, December.

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