Benefit-entitlement effects and the duration of unemployment: an ex-ante evaluation of recent labour market reforms in Germany

"We analyse benefit-entitlement effects and the likely impact of the recent reform of the unemployment compensation system on the duration of unemployment in Germany on the basis of a flexible discrete-time hazard rate model estimated on pre-reform data from the German Socioeconomic Panel (SOEP...

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Main Authors: Schmitz, Hendrik, Steiner, Viktor
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Bonn 2007
IZA
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19180083124919082659-Benefit-entitlement-effects-an.htm
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author Schmitz, Hendrik
Steiner, Viktor
author_facet Schmitz, Hendrik
Steiner, Viktor
collection Library items
description "We analyse benefit-entitlement effects and the likely impact of the recent reform of the unemployment compensation system on the duration of unemployment in Germany on the basis of a flexible discrete-time hazard rate model estimated on pre-reform data from the German Socioeconomic Panel (SOEP). We find (i) relatively strong benefit-entitlement effects for the unemployed who are eligible to means-tested unemployment assistance after the exhaustion of unemployment benefit, but not for those without such entitlement; (ii) non-monotonic benefit-entitlement effects on hazard rates with pronounced spikes around the month of benefit-exhaustion, and (iii) relatively small marginal effects of the amount of unemployment compensation on the duration of unemployment. Our simulation results show that the recent labour market reform is unlikely to have a major impact on the average duration of unemployment in the population as a whole, but will significantly reduce the level of long-term unemployment among older workers."
format TEXT
geographic Germany
id 19180083124919082659_6e875625bd8e48c8a6d8b230edf00511
institution ETUI-European Trade Union Institute
is_hierarchy_id 19180083124919082659_6e875625bd8e48c8a6d8b230edf00511
is_hierarchy_title Benefit-entitlement effects and the duration of unemployment: an ex-ante evaluation of recent labour market reforms in Germany
language English
physical 26 p.
Digital
publishDate 2007
publisher Bonn
IZA
spellingShingle Schmitz, Hendrik
Steiner, Viktor
labour market reform
statistics
unemployment
unemployment benefit
Benefit-entitlement effects and the duration of unemployment: an ex-ante evaluation of recent labour market reforms in Germany
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=117900293518
title Benefit-entitlement effects and the duration of unemployment: an ex-ante evaluation of recent labour market reforms in Germany
topic labour market reform
statistics
unemployment
unemployment benefit
url https://www.labourline.org/KENTIKA-19180083124919082659-Benefit-entitlement-effects-an.htm