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

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  • Fahr, René
  • Sunde, Uwe

Abstract

Starting in January 2003, Germany implemented the first two so-calledHartz reforms, followed by the third and fourth packages of Hartzreforms in January 2004 and January 2005, respectively. The aim of thesereforms was to accelerate labor market flows and reduce unemploymentduration. Without attempting to evaluate the specific components ofthese Hartz reforms, this paper provides a first attempt to evaluate theoverall 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 underlyingthe reforms, estimating the structural features of the matching process.The results indicate that the reforms indeed had an impact in making thelabor market more dynamic and accelerating the matching process.

Suggested Citation

  • Fahr, René & Sunde, Uwe, 2009. "Did the Hartz Reforms Speed-Up the Matching Process? A Macro-Evaluation Using Empirical Matching Functions," Munich Reprints in Economics 20482, University of Munich, Department of Economics.
  • Handle: RePEc:lmu:muenar:20482
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    References listed on IDEAS

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    1. Fahr, Rene & Sunde, Uwe, 2005. "Job and vacancy competition in empirical matching functions," Labour Economics, Elsevier, vol. 12(6), pages 773-780, December.
    2. Coles, Melvyn G & Petrongolo, Barbara, 2002. "A Test Between Unemployment Theories Using Matching Data," CEPR Discussion Papers 3241, C.E.P.R. Discussion Papers.
    3. Gross, Dominique M., 1997. "Aggregate job matching and returns to scale in Germany," Economics Letters, Elsevier, vol. 56(2), pages 243-248, October.
    4. van Ours, J.C. & Gorter, C., 1994. "Matching unemployment and vacancies in regional labour markets; An empirical analysis for the Netherlands," Other publications TiSEM 63318c4d-4008-4f29-94eb-a, Tilburg University, School of Economics and Management.
    5. René Fahr & Uwe Sunde, 2004. "Occupational job creation: patterns and implications," Oxford Economic Papers, Oxford University Press, vol. 56(3), pages 407-435, July.
    6. Bonin, Holger & Schneider, Hilmar, 2006. "Wirksamkeit der Förderung der beruflichen Weiterbildung vor und nach den Hartz-Reformen," IZA Discussion Papers 2069, Institute for the Study of Labor (IZA).
    7. Jacobi, Lena & Kluve, Jochen, 2006. "Before and After the Hartz Reforms: The Performance of Active Labour Market Policy in Germany," RWI Discussion Papers 41, RWI - Leibniz-Institut für Wirtschaftsforschung.
    8. Mumford, Karen & Smith, Peter N, 1999. " The Hiring Function Reconsidered: On Closing the Circle," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(3), pages 343-364, August.
    9. Fertig, Michael & Schmidt, Christoph M. & Schneider, Hilmar, 2006. "Active labor market policy in Germany--Is there a successful policy strategy?," Regional Science and Urban Economics, Elsevier, vol. 36(3), pages 399-430, May.
    10. Reinhard Hujer & Uwe Blien & Marco Caliendo & Christopher Zeiss, 2006. "Macroeconometric Evaluation of Active Labour Market Policies in Germany. A Dynamic Panel Approach Using Regional Data," AIEL Series in Labour Economics,in: Floro Ernesto Caroleo & Sergio Destefanis (ed.), The European Labour Market. Regional Dimensions, edition 1, chapter 14, pages 287-309 AIEL - Associazione Italiana Economisti del Lavoro.
    11. Rene Fahr & Uwe Sunde, 2006. "Regional dependencies in job creation: an efficiency analysis for Western Germany," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1193-1206.
    12. Coles, Melvyn G & Smith, Eric, 1998. "Marketplaces and Matching," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 239-254, February.
    13. Gregg, Paul & Petrongolo, Barbara, 2005. "Stock-flow matching and the performance of the labor market," European Economic Review, Elsevier, vol. 49(8), pages 1987-2011, November.
    14. Fahr, Rene & Sunde, Uwe, 2006. "Spatial mobility and competition for jobs: Some theory and evidence for Western Germany," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 803-825, November.
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