Hartz IV and the decline of German unemployment: A macroeconomic evaluation

Brigitte Hochmuth, Britta Kohlbrecher, Christian Merkl and Hermann Gartner
Additional contact information
Brigitte Hochmuth: FAU

No 201903, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "This paper proposes a new approach to evaluate the macroeconomic effects of the Hartz IV reform in Germany, which reduced the generosity of long-term unemployment benefits. We use a model with different unemployment durations, where the reform initiates both a partial effect and an equilibrium effect. The relative importance of these two effects and the size of the partial effect are estimated based on the IAB Job Vacancy Survey. Our novel methodology provides a solution for the existing disagreement in the macroeconomic literature on the unemployment effects of Hartz IV. We find that Hartz IV was a major driver for the decline of Germany's unemployment and that partial and equilibrium effect where of equal importance. We thereby contribute to the literature on partial and equilibrium effects of unemployment benefit changes. In addition, we are the first to provide direct empirical evidence on labour selection, which can be interpreted as one dimension of recruiting intensity." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Auswirkungen; Beschäftigungseffekte; Beveridgekurve; Hartz-Reform; Arbeitslosigkeitsentwicklung; Konjunkturabhängigkeit; Langzeitarbeitslose; Personaleinstellung; IAB-Stellenerhebung; Arbeitslosenversicherung; Arbeitsmarktgleichgewicht; IAB-Haushaltspanel; 1992-2015 (search for similar items in EconPapers)
JEL-codes: E00 E24 E60 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2019-02-21
New Economics Papers: this item is included in nep-mac
References: Add references at CitEc
Citations: View citations in EconPapers (19)

Published in/as: Journal of Economic Dynamics and Control, doi:10.1016/j.jedc.2021.104114

Downloads: (external link)
https://doku.iab.de/discussionpapers/2019/dp0319.pdf

Related works:
Journal Article: Hartz IV and the decline of German unemployment: A macroeconomic evaluation (2021)
Working Paper: Hartz IV and the Decline of German Unemployment: A Macroeconomic Evaluation (2021)
Working Paper: Hartz IV and the Decline of German Unemployment: A Macroeconomic Evaluation (2021)
Working Paper: Hartz IV and the decline of German unemployment: A macroeconomic evaluation (2021)
Working Paper: Hartz IV and the Decline of German Unemployment: A Macroeconomic Evaluation (2019)
Working Paper: Hartz IV and the Decline of German Unemployment: A Macroeconomic Evaluation (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:201903

Access Statistics for this paper

More papers in IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] Contact information at EDIRC.
Bibliographic data for series maintained by IAB, Geschäftsbereich Wissenschaftliche Fachinformation und Bibliothek ().