The Dovish Turnaround: Germany’s Social Benefit Reform and Job Findings

Enzo Weber

No 202407, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "On the labor markets, recent decades were characterised by structural supply-side reforms in many countries. Following its hawkish reforms from the 2000s, Germany has recently made a dovish turnaround. Conditions in basic income support for unemployed became more generous. Before, a temporary moratorium on sanctions had been imposed, providing a unique policy shift. We analyze the short-run consequences for job findings, building on large administrative data and a novel control group approach. The moratorium dampened job findings by four percent and the subsequent benefit reform by almost six percent in the first year. Other factors played a still larger role for the recent weakening of job findings." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; IAB-Open-Access-Publikation; Auswirkungen; berufliche Reintegration; Beschäftigungseffekte; Bürgergeld; Erwerbsbeteiligung; aktivierende Arbeitsmarktpolitik; Reform; Sanktion; Arbeitsaufnahme; Arbeitslosengeld II-Empfänger; Bürgergeld-Empfänger; 2017-2023 (search for similar items in EconPapers)
JEL-codes: J20 J64 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2024-05-06
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Citations: View citations in EconPapers (2)

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https://doi.org/10.48720/IAB.DP.2407

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:202407

DOI: 10.48720/IAB.DP.2407

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