The Aggregate Effects of the Hartz Reforms in Germany

Matthias Hertweck and Oliver Sigrist

No 2012-38, Working Paper Series of the Department of Economics, University of Konstanz from Department of Economics, University of Konstanz

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 reforms; matching efficiency; unemployment fluctuations (search for similar items in EconPapers)
JEL-codes: E24 E32 J63 J64 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2012-12-21
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Citations: View citations in EconPapers (38)

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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 (2013)
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