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

Stephan Dlugosz, Gesine Stephan and Ralf Wilke

No 200925, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "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." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Dauer; Leistungsbezug; ältere Arbeitnehmer; Arbeitslosengeld; arbeitsmarktpolitische Maßnahme; Wirkungsforschung; 2006-2008 (search for similar items in EconPapers)
JEL-codes: J63 J65 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2009
New Economics Papers: this item is included in nep-ias and nep-lab
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Citations: View citations in EconPapers (16)

Published in/as: German Economic Review, Online First (2013), 24 S., doi:10.1111/geer.12014

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Related works:
Working Paper: Fixing the leak: Unemployment incidence before and after the 2006 reform of unemployment benefits in Germany (2009)
Working Paper: Fixing the leak: unemployment incidence before and after the 2006 reform of unemployment benefits in Germany (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:200925

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