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

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  • Arntz, Melanie
  • Wilke, Ralf A.

Abstract

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.

Suggested Citation

  • Arntz, Melanie & Wilke, Ralf A., 2006. "Unemployment duration in Germany: individual and regional determinants of local job finding, migration and subsidized employment," ZEW Discussion Papers 06-092, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:5485
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    Cited by:

    1. Niklas Potrafke, 2013. "Economic Freedom and Government Ideology across the German States," Regional Studies, Taylor & Francis Journals, vol. 47(3), pages 433-449, March.
    2. Arntz, Melanie & Wilke, Ralf A. & Winterhager, Henrik, 2006. "Regionenmatching im Rahmen der Evaluation der Experimentierungsklausel des § 6c SGB II: Methodische Vorgehensweise und Ergebnisse," ZEW Discussion Papers 06-061, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    3. Christoph Kern, 2014. "Regional Structures and Mobility Dispositions: A Multilevel Proportional- & Partial-Proportional Odds Approach," SOEPpapers on Multidisciplinary Panel Data Research 681, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Dirk Oberschachtsiek, 2014. "Waiting to start a business venture. Empirical evidence on the determinants," Working Paper Series in Economics 293, University of Lüneburg, Institute of Economics.
    5. Arntz, Melanie & Lo, Simon M. S. & Wilke, Ralf A., 2007. "Bounds analysis of competing risks : a nonparametric evaluation of the effect of unemployment benefits on migration in Germany," FDZ Methodenreport 200704_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Oberschachtsiek, Dirk, 2010. "How do local labor market conditions and individual characteristics affect quitting selfemployment?," Discussion Papers, Presidential Department P 2010-001, WZB Berlin Social Science Center.
    7. Stephan Dlugosz & Gesine Stephan & Ralf A. Wilke, "undated". "Fixing the leak: Unemployment incidence before and after the 2006 reform of unemployment benefits in Germany," Discussion Papers 09/10, University of Nottingham, School of Economics.
    8. Fuchs, Michaela & Wesling, Mirko & Weyh, Antje, 2014. "Potenzialnutzung in Ostdeutschland : eine Analyse von Angebot und Nachfrage auf dem Arbeitsmarkt," IAB-Forschungsbericht 201406, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Melanie Arntz & Simon Lo & Ralf Wilke, 2014. "Bounds analysis of competing risks: a non-parametric evaluation of the effect of unemployment benefits on migration," Empirical Economics, Springer, vol. 46(1), pages 199-228, February.
    10. Kloß, Michael & Nagl, Wolfgang, 2013. "Unemployment compensation and unemployment duration - Evidence from the German Hartz IV reform," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79711, Verein für Socialpolitik / German Economic Association.
    11. repec:bla:ecorec:v:93:y:2017:i:301:p:238-254 is not listed on IDEAS
    12. Carlos Alberto Foronda Rojas & Andrea Alcaráz, 2015. "Estimation and characteristics of unemployment duration in Bolivia," Investigación & Desarrollo 0215, Universidad Privada Boliviana, revised Jun 2015.
    13. Luis Eduardo Arango & Ana María Ríos, 2015. "Duración del desempleo en Colombia: género, intensidad de búsqueda y anuncios de vacantes," BORRADORES DE ECONOMIA 012528, BANCO DE LA REPÚBLICA.
    14. Vincent Fromentin, 2012. "Migration and unemployment duration in OECD countries: A dynamic panel analysis," Economics Bulletin, AccessEcon, vol. 32(2), pages 1113-1124.
    15. Oberschachtsiek, Dirk & Scioch, Patrycja, 2011. "The outcome of coaching and training for self-employment : a statistical evaluation of non-financial support schemes for unemployed business founders in Germany," IAB Discussion Paper 201116, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    16. Luis Eduardo Arango & Ana María Ríos, 2015. "Duración del desempleo en Colombia: género, intensidad de búsqueda y anuncios de vacantes," BORRADORES DE ECONOMIA 012528, BANCO DE LA REPÚBLICA.
    17. Philip Ball & Ralf Wilke, "undated". "Job seeker's allowance in Great Britain: How does the regional labour market affect the duration until job finding?," Discussion Papers 09/03, University of Nottingham, School of Economics.
    18. Wolfgang Nagl & Michael Weber, 2014. "Unemployment compensation and unemployment duration before and after the German Hartz IV reform," ifo Working Paper Series 186, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    19. Arntz, Melanie & Lo, Simon M. S. & Wilke, Ralf A., 2008. "Bounds analysis of competing risks : a nonparametric evaluation of the effect of unemployment benefits on migration in Germany (Revised version of the FDZ Methodenbericht No. 04/2007)," FDZ Methodenreport 200806_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    20. Wielandt, Hanna & Senftleben, Charlotte, 2012. "The Polarization of Employment in German Local Labor Markets," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62063, Verein für Socialpolitik / German Economic Association.
    21. Hiller, Norbert & Lerbs, Oliver W., 2016. "Aging and urban house prices," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 276-291.
    22. Ralf Wilke, "undated". "Unemployment Duration in the United Kingdom: An Incomplete Data Approach," Discussion Papers 09/02, University of Nottingham, School of Economics.
    23. Elisabeta JABA & Alina Mariuca IONESCU & Corneliu IATU & Christiana Brigitte BALAN, 2009. "The Evaluation Of The Regional Profile Of The Economic Development In Romania," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 56, pages 537-549, November.

    More about this item

    Keywords

    competing-risk; labor market policy; individual and regional data;

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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