Potential duration of unemployment benefits and labor market outcomes for older workers with health impairments in Germany

Inna Petrunyk and Christian Pfeifer

Bulletin of Economic Research, 2023, vol. 75, issue 1, 111-118

Abstract: This research note estimates the causal effects of a cut in the potential duration of regular unemployment benefits for older workers in Germany on the labor market outcomes of individuals with health impairments. The analyzed reform is a natural experiment that allows a difference‐in‐differences strategy with treatment intensity. The results provide evidence for a significant decrease in the number of days in regular unemployment benefits and an increase in the number of days in employment. However, the results also suggest a significant increase in the number of days in unemployment (social) assistance, which are granted upon exhaustion of regular unemployment benefits.

Date: 2023
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