Does the Hartz IV Reform have an Effect on Matching Efficiency in Germany? A Stochastic Frontier Approach
In the course of a comprehensive labor market reform started in 2002 and finished through the implementation of the most radical measure Hartz IV in 2005, I exploit its impact on matching processes in Germany. I use disaggregated data for 178 local employment agencies to examine the effects of stocks and flows of vacancies and unemployed on the hiring rate as well as on the matching efficiency. Building on the work of Ibourk et al. (2004) and Fahr and Sunde (2006), I employ a stochastic frontier analysis. As a functional framework I choose the translog function to address the interactions of stocks and flows in generating new hires. Furthermore, the twofold structure of a stochastic frontier allows for a modeling of potential sources (e.g. Hartz IV) expected to induce an increased or decreased matching efficiency. My results suggest that Hartz IV exhibits a significantly positive impact on the hiring rate and the matching efficiency. Compared to 1998, on average matching efficiency experienced an increase in 2007.
|Date of creation:||Dec 2009|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
- Eran Yashiv, 2000.
"The Determinants of Equilibrium Unemployment,"
American Economic Review,
American Economic Association, vol. 90(5), pages 1297-1322, December.
- 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.
- Fahr, René & Sunde, Uwe, 2005.
"Regional Dependencies in Job Creation: An Efficiency Analysis for Western Germany,"
IZA Discussion Papers
1660, Institute for the Study of Labor (IZA).
- 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.
- Fahr, René & Sunde, Uwe, 2006. "Regional dependencies in job creation: An efficiency analysis for Western Germany," Munich Reprints in Economics 20484, University of Munich, Department of Economics.
- Melvyn Coles & Barbara Petrongolo, 2008. "A Test Between Stock-Flow Matching And The Random Matching Function Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1113-1141, November.
- Warren, Ronald Jr., 1996. "Returns to scale in a matching model of the labor market," Economics Letters, Elsevier, vol. 50(1), pages 135-142, January.
- Coles, Melvyn G & Smith, Eric, 1996.
"Cross-Section Estimation of the Matching Function: Evidence from England and Wales,"
London School of Economics and Political Science, vol. 63(252), pages 589-597, November.
- Coles, Melvyn G & Smith, Eric, 1994. "Cross-Section Estimation of the Matching Function: Evidence from England and Wales," CEPR Discussion Papers 966, C.E.P.R. Discussion Papers.
- 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.
- René Fahr & Uwe Sunde, 2009. "Did the Hartz Reforms Speed-Up the Matching Process? A Macro-Evaluation Using Empirical Matching Functions," German Economic Review, Verein für Socialpolitik, vol. 10, pages 284-316, 08.
- Jacobi, Lena & Kluve, Jochen, 2006. "Before and After the Hartz Reforms: The Performance of Active Labour Market Policy in Germany," IZA Discussion Papers 2100, Institute for the Study of Labor (IZA).
- Sanna-Mari Hynninen, 2009. "Matching in local labor markets: a stochastic frontier approach," Journal of Productivity Analysis, Springer, vol. 31(1), pages 15-26, February.
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- 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.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:22295. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.