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Unemployment compensation and unemployment duration - Evidence from the German Hartz IV reform

Michael Kloß and Wolfgang Nagl
Authors registered in the RePEc Author Service: Michael Weber

Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order from Verein für Socialpolitik / German Economic Association

Abstract: In 2005, the unemployment compensation for long-term unemployed was reduced in Germany. We examine how this reform affected the transition probability to employment. Additionally, we inspect how this effect varies over unemployment duration. We estimate proportional hazard models using German administrative spell data. According to our results the reform has raised the transition probability of short-term unemployed. The effect is even higher, the longer the unemployment duration. However, the results for long-term unemployed are inconclusive.

JEL-codes: J64 J65 J68 (search for similar items in EconPapers)
Date: 2013
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