The Effect of the Hartz Reform on Unemployment Duration and Post-Unemployment Outcomes. A Difference-in-Differences Approach

Bruno Amable and Baptiste Françon ()
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Baptiste Françon: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

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Abstract: In this paper, we investigate the microeconomic effects of one major feature of the German Hartz Reforms (2003-2005), namely the reduction in compensation duration for older unemployed above 45 years of age. We look at two potential effects of this measure: on job take-up rates, but also on post-unemployment outcomes, through various indicators of matching quality (job stability, skill adequacy) and job quality (type of job contract). Applying difference-in-differences estimators, we show that the effects of this specific feature were rather scant. Regarding unemployment duration, only unemployed within a specific age group (55 to 59 years old) were affected by the reform. Evidence suggests that this is because they previously used unemployment schemes as a bridge to early retirement. In addition, there is some evidence of detrimental effects on job or matching quality.

Keywords: Assurance chômage; durée de chômage; appariement sur le marché du travail; qualité de l'emploi; dispositifs de pré-retraite; différence-de-différences; Unemployment benefits; unemployment duration; job matching; job quality; early retirement; difference-in-differences (search for similar items in EconPapers)
Date: 2014-03
New Economics Papers: this item is included in nep-age, nep-eur and nep-lab
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00973884v1
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Published in 2014

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Related works:
Working Paper: The Effect of the Hartz Reform on Unemployment Duration and Post-Unemployment Outcomes. A Difference-in-Differences Approach (2014)
Working Paper: The Effect of the Hartz Reform on Unemployment Duration and Post-Unemployment Outcomes. A Difference-in-Differences Approach (2014)
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