The Aggregate Effects of the Hartz Reforms in Germany

Matthias Hertweck and Oliver Sigrist

Working papers from Faculty of Business and Economics - University of Basel

Abstract: This paper quantifies the impact of the Hartz reforms on matching efficiency, using monthly SOEP gross worker flows (1983-2009). We show that, until the early 2000s, close to 60% of changes in the unemployment rate are due to changes in the inflow rate (job separation). On the contrary, since the implementation of the reforms in the mid-2000s, the importance of the outflow rate (job finding) has been steadily increasing. This indicates that matching efficiency has improved substantially in recent years. Results from an estimated matching function - pointing to efficiency gains of more than 20% - corroborate this finding.

Keywords: SOEP gross worker flows; Hartz reform; matching efficiency; unemployment fluctuations (search for similar items in EconPapers)
JEL-codes: E24 E32 J63 J64 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34)

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Related works:
Working Paper: The Aggregate Effects of the Hartz Reforms in Germany (2013)
Working Paper: The Aggregate Effects of the Hartz Reforms in Germany (2013)
Working Paper: The Aggregate Effects of the Hartz Reforms in Germany (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:bsl:wpaper:2013/01

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