Unemployment compensation and unemployment duration before and after the German Hartz IV reform

Arbeitspapier

In 2005, the unemployment benefits for long-term unemployed were reduced inGermany. We investigate the effect of this reform on the transition probability fromunemployment to employment using a large German administrative spell data set (SIAB1975–2010). We estimate that the daily transition probability of medium wage earnersincreased on average by 24% after the reform. The effect is lower for both, low and highwage earners. Men were less affected than women and West Germans were less affectedthan East Germans. For short-term unemployed the effect is increasing over unemploymentduration while long-term unemployed apparently did not benefit from the reform.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ifo Working Paper ; No. 186

Classification and Topics

• Classification: Wirtschaft ; Unemployment: Models, Duration, Incidence, and Job Search ; Mobility, Unemployment, and Vacancies: Public Policy
• Subject: Duration analysis ; hazard rate ; unemployment benefit ; Hartz reform

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Nagl, Wolfgang ; Weber, Michael
• Event: Veröffentlichung
• (who): ifo Institute - Leibniz Institute for Economic Research at the University of Munich
• (where): Munich
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/108755
• Last update: 10.03.2025, 11:43 AM CET