Arbeitspapier

Unemployment Benefit and Wages: The Impact of the Labor Market Reform in Germany on (Reservation) Wages

In this paper, we contribute to the literature on the impact of the unemployment benefit on (reservation) wages. We use the German BA-Employment Panel (2008) to identify the effect of a reduced unemployment benefit due to the labor market reform of 2005 in Germany. Using this unique experiment, we find strong evidence that a lower unemployment benefit has an adverse effect on wages.

Language
Englisch

Bibliographic citation
Series: ifo Working Paper ; No. 101

Classification
Wirtschaft
Unemployment: Models, Duration, Incidence, and Job Search
Unemployment Insurance; Severance Pay; Plant Closings
Subject
Unemployment benefit
reservation wages
wages
Arbeitslosenversicherung
Anspruchslohn
Hartz-Reform
Lohn
Deutschland

Event
Geistige Schöpfung
(who)
Arent, Stefan
Nagl, Wolfgang
Event
Veröffentlichung
(who)
ifo Institute - Leibniz Institute for Economic Research at the University of Munich
(where)
Munich
(when)
2011

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Arent, Stefan
  • Nagl, Wolfgang
  • ifo Institute - Leibniz Institute for Economic Research at the University of Munich

Time of origin

  • 2011

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