The German unemployment since the Hartz reforms: Permanent or transitory fall?

Gaëtan Stephan and Julien Lecumberry

Economics Letters, 2015, vol. 136, issue C, 49-54

Abstract: The Hartz reforms were designed to make the German labor market more flexible in order to reverse the increasing trend of unemployment. This paper employs unobserved components models in order to distinguish permanent from transitory movements in the German unemployment rate. Our results show that the permanent component of the German unemployment was reduced in the range of 1.1 and 2.6 percentage points after the Hartz reforms.

Keywords: Business cycle; Unobserved components; Hartz reforms (search for similar items in EconPapers)
JEL-codes: C32 E32 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:136:y:2015:i:c:p:49-54

DOI: 10.1016/j.econlet.2015.08.003

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