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The Aggregate Effects of the Hartz Reforms in Germany

  • Matthias S. Hertweck
  • Oliver Sigrist

This paper quantifies the impact of the Hartz reforms on matching efficiency, using monthly SOEP gross worker flows (1983-2009). We show that, until the early 2000s, close to 60% of changes in the unemployment rate are due to changes in the inflow rate (job separation). On the contrary, since the implementation of the reforms in the mid-2000s, the importance of the outflow rate (job finding) has been steadily increasing. This indicates that matching efficiency has improved substantially in recent years. Results from an estimated matching function - pointing to efficiency gains of more than 20% - corroborate this finding.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.414559.de/diw_sp0532.pdf
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Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 532.

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Length: 39 p.
Date of creation: 2013
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp532
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Web page: http://www.diw.de/en/soep
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  17. Jean-Olivier Hairault & Thomas Le Barbanchon & Thepthida Sopraseuth, 2013. "The cyclicality of the separation and job finding rates in France," THEMA Working Papers 2013-07, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  18. Sabine Klinger & Thomas Rothe, 2012. "The Impact of Labour Market Reforms and Economic Performance on the Matching of the Short‐term and the Long‐term Unemployed," Scottish Journal of Political Economy, Scottish Economic Society, vol. 59(1), pages 90-114, 02.
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  34. Kluve, Jochen & Schaffner, Sandra & Schmidt, Christoph M., 2006. "Labor Force Status Dynamics in the German Labor Market: Individual Heterogeneity and Cyclical Sensitivity," Technical Reports 2006,20, Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen.
  35. Shigeru Fujita & Christopher J. Nekarda & Garey Ramey, 2007. "The cyclicality of worker flows: new evidence from the SIPP," Working Papers 07-5, Federal Reserve Bank of Philadelphia.
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  39. repec:iab:iabzaf:v:40:i:1:p:45-64 is not listed on IDEAS
  40. Klinger, Sabine & Rothe, Thomas, 2010. "The impact of labour market reforms and economic performance on the matching of short-term and long-term unemployed," IAB Discussion Paper 201013, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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