Transitions in the German labor market: Structure and crisis
Michael Krause and
Harald Uhlig ()
No 2011,34, Discussion Paper Series 1: Economic Studies from Deutsche Bundesbank
Abstract:
Since the so-called Hartz IV reforms around 2005 and during the global crisis of 2008/2009, the German labor market featured mainly declining unemployment rates. We develop a search and matching model with heterogeneous skills to explore the role of structural and cyclical policies for this performance. Calibrating unemployment benefits to approximate legislation before and after the reforms, we find a large reduction in unemployment and its duration, with the transition concluding after about three years. During the crisis, the extended use of short-time labor subsidies that prevent jobs from being destroyed is likely to have prevented strong increases in unemployment.
Keywords: German Hartz IV reforms; search and matching; unemployment benefits; labor subsidies (search for similar items in EconPapers)
JEL-codes: E24 E32 J64 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-dge, nep-lab and nep-mac
References: Add references at CitEc
Citations: View citations in EconPapers (12)
Downloads: (external link)
https://www.econstor.eu/bitstream/10419/55528/1/685617653.pdf (application/pdf)
Related works:
Journal Article: Transitions in the German labor market: Structure and crisis (2012) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:zbw:bubdp1:201134
Access Statistics for this paper
More papers in Discussion Paper Series 1: Economic Studies from Deutsche Bundesbank Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().