The Aggregate Effects of the Hartz Reforms in Germany

Arbeitspapier

This paper quantifies the impact of the Hartz reforms on matching efficiency, using monthly SOEP gross worker flows (1983-2009). We show that, until the early 2000s, close to 60% of changes in the unemployment rate are due to changes in the inflow rate (job separation). On the contrary, since the implementation of the reforms in the mid-2000s, the importance of the outflow rate (job finding) has been steadily increasing. This indicates that matching efficiency has improved substantially in recent years. Results from an estimated matching function — pointing to efficiency gains of more than 20% — corroborate this finding.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WWZ Discussion Paper ; No. 2013/01

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Business Fluctuations; Cycles ; Labor Turnover; Vacancies; Layoffs ; Unemployment: Models, Duration, Incidence, and Job Search
• Subject: SOEP gross worker flows ; Hartz reform ; matching efficiency ; unemployment fluctuations ; Arbeitsmarktreform ; Beschäftigungseffekt ; Arbeitslosigkeit ; Dauer ; Matching ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hertweck, Matthias S. ; Sigrist, Oliver
• Event: Veröffentlichung
• (who): University of Basel, Center of Business and Economics (WWZ)
• (where): Basel
• (when): 2013

Further information

• DOI: doi:10.5451/unibas-ep42715
• Handle: http://hdl.handle.net/10419/123443
• Last update: 10.03.2025, 11:42 AM CET