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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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