Hartz sei Dank? Stabilität und Entlohnung neuer Jobs nach Arbeitslosigkeit

Ursula Jaenichen and Thomas Rothe

WSI-Mitteilungen, 2014, vol. 67, issue 3, 227-235

Abstract: The Hartz reforms induced profound changes in the German labour market institutions. The reforms addressed both labour supply and demand with the aim of increasing the labour market’s flexibility and absorbability. The paper looks at wages and job tenure in order to assess whether the quality of new jobs taken up after unemployment in the period from 1998 to 2009/2010 in west Germany deteriorated over time. The results point to a marked reduction in real wages over time and to a higher level of wage inequality. Job tenures after unemployment have remained relatively stable during and after the Hartz reforms. Previously unemployed workers earn lower wages and have shorter job durations. An increase in the length of unemployment preceding the job is associated with even lower wages and – for men – with less job stability. In several sub-periods of our observation period an additional decline in job quality especially for previously long-term unemployed workers can be found.

Date: 2014
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DOI: 10.5771/0342-300X-2014-3-227

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