The Aggregate Effects of the Hartz Reforms in Germany

Matthias Hertweck and Oliver Sigrist

No 532, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

Abstract: 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.

Keywords: SOEP gross worker flows; Hartz reforms; matching efficiency; unemployment fluctuations (search for similar items in EconPapers)
JEL-codes: E24 E32 J63 J64 (search for similar items in EconPapers)
Pages: 39 p.
Date: 2013
New Economics Papers: this item is included in nep-eec, nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (33)

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https://www.diw.de/documents/publikationen/73/diw_01.c.414559.de/diw_sp0532.pdf (application/pdf)

Related works:
Working Paper: The Aggregate Effects of the Hartz Reforms in Germany (2013)
Working Paper: The Aggregate Effects of the Hartz Reforms in Germany (2013)
Working Paper: The Aggregate Effects of the Hartz Reforms in Germany (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwsop:diw_sp532

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