Unemployment benefits and the duration of unemployment in East Germany

Arbeitspapier

This paper studies the impact of unemployment benefits on unemployment duration for East Germany using data from the German Socio-Economic Panel. It concentrates on exit from unemployment into employment. Estimation results of a discrete-time hazard rate model imply that moderate cuts in the replacement rate raise the hazards by little. The effect of the replacement rate on the hazards becomes weaker the longer people are unemployed. The threat of periods of benefit sanction could explain this. The hazards are not generally declining in time until exhausting unemployment insurance (UI) benefits, but rise just prior to exhausting UI.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper ; No. 344

Classification and Topics

• Classification: Duration Analysis; Optimal Timing Strategies ; Unemployment: Models, Duration, Incidence, and Job Search ; Unemployment Insurance; Severance Pay; Plant Closings
• Subject: Unemployment duration ; hazard rate ; unemployment benefit ; East Germany

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Wolff, Joachim
• Event: Veröffentlichung
• (who): Ludwig-Maximilians-Universität München, Sonderforschungsbereich 386 - Statistische Analyse diskreter Strukturen
• (where): München
• (when): 2003

Further information

• DOI: doi:10.5282/ubm/epub.1720
• Handle: http://hdl.handle.net/10419/31054
• URN: urn:nbn:de:bvb:19-epub-1720-4
• Last update: 10.03.2025, 11:42 AM CET