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Unemployment duration in Germany: individual and regional determinants of local job finding, migration and subsidized employment

  • Arntz, Melanie
  • Wilke, Ralf A.

Recent labor market reforms in Germany aim, among other things, at reducing unemployment by restricting passive unemployment measures, emphasizing local labor market policies and re-structuring public employment services. This paper uses extensive individual administrative and regional aggregate data to explore the extent to which these factors are likely to contribute to the shortening of unemployment duration. For this purpose, we estimate a semi-parametric duration model with three competing exit states. Our results suggest that changes in the unemployment compensation system rather than local employment policies and administrative restructuring efforts meet expected labor market outcomes. In addition, determinants of the length of unemployment vary across exit states.

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 06-92.

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Date of creation: 2006
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Handle: RePEc:zbw:zewdip:5485
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  18. Hummel, Elisabeth & Jacobebbinghaus, Peter & Kohlmann, Annette & Oertel, Martina & Wübbeke, Christina & Ziegerer, Manfred, 2005. "Stichprobe der Integrierten Erwerbsbiografien : IEBS 1.0, Handbuch-Version 1.0.0 (Integrated Employment Biographies Sample IEBS 1.0)," FDZ Datenreport. Documentation on Labour Market Data 200506_de, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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  33. Yankow, Jeffrey J., 2004. "The Geographic Mobility of Displaced Workers: Do Local Employment Conditions Matter?," The Review of Regional Studies, Southern Regional Science Association, vol. 34(2), pages 120-36.
  34. Cockx, Bart & Dejemeppe, Muriel, 2002. "Duration Dependence in the Exit Rate out of Unemployment in Belgium: Is It True or Spurious?," IZA Discussion Papers 632, Institute for the Study of Labor (IZA).
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