The German Labor Market Reforms and Post-Unemployment Earnings
IMF Working Papers, July 17, 2015
Source details
- Canonical URL
- The German Labor Market Reforms and Post-Unemployment Earnings
Other formats
Bibliographic details
- Authors: Niklas Engbom, Enrica Detragiache, Faezeh Raei
- Published: July 17, 2015
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513531250.001
Summary and main finding
- In 2003–05, Germany implemented extensive labor market reforms that included a drastic cut in benefits for the long-term unemployed and tighter job search and acceptance obligations.
- Using a large confidential data set from the German social security administration, the authors find that the reforms were associated with a fall in the earnings of workers returning to work from short-term unemployment relative to workers in long-term employment of about 10 percent.
- Interpretation offered: the reforms strengthened incentives to return to work but, in doing so, adversely affected post re-entry earnings.
Data and methodology
- Data source: large confidential data set from the German social security administration.
- Method: difference-in-difference earnings regression (keyword appears in source).
Key statistics and publication facts
- Timeframe of reforms examined: 2003–05.
- Estimated effect on post-unemployment re-entry earnings: about 10 percent (fall for workers returning from short-term unemployment relative to long-term employed workers).
- Pages: 26
- Volume: 2015
- Issue: 162
- Series: Working Paper No. 2015/162
- DOI: https://doi.org/10.5089/9781513531250.001
- ISBN: 9781513531250
- ISSN: 1018-5941
- Publication date on page: July 17, 2015
- Authors: Niklas Engbom, Enrica Detragiache, Faezeh Raei
Themes and keywords (as provided)
- Employment, Expenditure, Labor, Labor markets, Unemployment, Unemployment benefits, Wages
- Keywords: difference-in-difference earnings regression, displaced worker, earnings worker, Eastern Europe, education worker, Employment, employment status, Europe, Germany, growth change, Hartz reform, labor market reforms, post displacement, post unemployment, re-entry earnings, reservation wage, robustness earnings regression, Unemployment, Unemployment benefits, unemployment insurance, Wages, WP
Source: IMF Working Paper "The German Labor Market Reforms and Post-Unemployment Earnings", Niklas Engbom, Enrica Detragiache, Faezeh Raei; July 17, 2015; https://www.imf.org/en/publications/wp/issues/2016/12/31/the-german-labor-market-reforms-and-post-unemployment-earnings