EconPapers    
Economics at your fingertips  
 

What hides behind the German labor market miracle? Unemployment insurance reforms and labor market dynamics

Moritz Kuhn, Benjamin Hartung and Philip Jung
Additional contact information
Benjamin Hartung: University of Bonn
Philip Jung: TU Dortmund

No 284, 2019 Meeting Papers from Society for Economic Dynamics

Abstract: A key question in labor market research is how the unemployment insurance system affects unemployment rates and labor market dynamics. We revisit this old question studying the German Hartz reforms. On average, lower separation rates explain 76% of declining unemployment after the reform, a fact unexplained by existing research focusing on job finding rates. The reduction in separation rates is heterogeneous, with long-term employed, high-wage workers being most affected. We causally link our empirical findings to the reduction in long-term unemployment benefits using a heterogeneous-agent labor market search model. Absent the reform, unemployment rates would be 50% higher today.

New Economics Papers: this item is included in nep-dge, nep-eec, nep-ias and nep-ltv
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://economicdynamics.org/meetpapers/2019/paper_284.pdf (application/pdf)

Related works:
Working Paper: What hides behind the German labor market miracle? Unemployment insurance reforms and labor market dynamics (2018) Downloads
Working Paper: What Hides behind the German Labor Market Miracle? Unemployment Insurance Reforms and Labor Market Dynamics (2018) Downloads
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:red:sed019:284

Access Statistics for this paper

More papers in 2019 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

 
Page updated 2019-11-19
Handle: RePEc:red:sed019:284