Arbeitspapier

Fixing the leak: unemployment incidence before and after the 2006 reform of unemployment benefits in Germany

From 2002-2004, the German government passed several laws that curtailed the generosity of the unemployment compensation system. One of the most ambitious changes was a considerable reduction in unemployment benefit entitlement lengths for older unemployed, which was effective during 2006 and 2007. We apply a difference-in-differences approach to show that the highly disputed reform induced a considerable decline in unemployment incidence among older workers. It thus sealed an important leak in the unemployment insurance system. Furthermore, we find a strong anticipation effect; unemployment entries of elderly workers peaked during the months preceding the reform.

Language
Englisch

Bibliographic citation
Series: ZEW Discussion Papers ; No. 09-079

Classification
Wirtschaft
Labor Turnover; Vacancies; Layoffs
Unemployment Insurance; Severance Pay; Plant Closings
Subject
unemployment incidence
policy evaluation
administrative data
Arbeitslosenversicherung
Hartz-Reform
Wirkungsanalyse
Arbeitslosigkeit
Ältere Arbeitskräfte
Deutschland

Event
Geistige Schöpfung
(who)
Dlugosz, Stephan
Stephan, Gesine
Wilke, Ralf A.
Event
Veröffentlichung
(who)
Zentrum für Europäische Wirtschaftsforschung (ZEW)
(where)
Mannheim
(when)
2009

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Dlugosz, Stephan
  • Stephan, Gesine
  • Wilke, Ralf A.
  • Zentrum für Europäische Wirtschaftsforschung (ZEW)

Time of origin

  • 2009

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