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Did the Hartz Reforms Speed-Up Job Creation? A Macro-Evaluation Using Empirical Matching Functions

Author

Listed:
  • Fahr, René

    (University of Paderborn)

  • Sunde, Uwe

    (University of Munich)

Abstract

Starting in January 2003, Germany implemented the first two so-called Hartz reforms, followed by the third and fourth packages of Hartz reforms in January 2004 and January 2005, respectively. The aim of these reforms was to accelerate labor market flows and reduce unemployment duration. Without attempting to evaluate the specific components of these Hartz reforms, this paper provides a first attempt to evaluate the overall effectiveness of the first two reform waves, Hartz I/II and III, in speeding up the matching process between unemployed and vacant jobs. The analysis is conceptually rooted in the flow-based view underlying the reforms, estimating the structural features of the matching process. The results indicate that the reforms indeed had an impact in making the labor market more dynamic and accelerating the matching process.

Suggested Citation

  • Fahr, René & Sunde, Uwe, 2006. "Did the Hartz Reforms Speed-Up Job Creation? A Macro-Evaluation Using Empirical Matching Functions," IZA Discussion Papers 2470, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2470
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    Citations

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    Cited by:

    1. Francesco D’Amuri & Gianmarco I.P. Ottaviano & Giovanni Peri, 2021. "The labor market impact of immigration in Western Germany in the 1990s," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 8, pages 223-243, World Scientific Publishing Co. Pte. Ltd..
    2. Philip J. O’Connell & Seamus Mcguinness & Elish Kelly, 2012. "The Transition from Short- to Long-Term Unemployment: A Statistical Profiling Model for Ireland," The Economic and Social Review, Economic and Social Studies, vol. 43(1), pages 135-164.
    3. Konle-Seidl, Regina, 2008. "Changes in the governance of employment services in Germany since 2003," IAB-Discussion Paper 200810, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Jason Heyes & Ludek Rychly (ed.), 2013. "Labour Administration in Uncertain Times," Books, Edward Elgar Publishing, number 15525.
    5. Ciro Avitabile & Irma Clots-Figueras & Paolo Masella, 2014. "Citizenship, Fertility, and Parental Investments," American Economic Journal: Applied Economics, American Economic Association, vol. 6(4), pages 35-65, October.
    6. Indermit Gill & Johannes Koettl & Truman Packard, 2013. "Full employment: a distant dream for Europe," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-34, December.
    7. O'Connell, Philip J. & McGuinness, Seamus & Kelly, Elish, 2010. "A Statistical Profiling Model of Long-Term Unemployment Risk in Ireland," Papers WP345, Economic and Social Research Institute (ESRI).

    More about this item

    Keywords

    stock-flow matching; empirical matching function; Hartz reform;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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