Diverse effects of shorter potential unemployment benefit duration on labor market outcomes in Germany

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet


This paper explores diverse effects of an unemployment benefit (UB) reform in Germany on labor market outcomes of individuals with health impairment. The reform induced substantial reductions in potential duration of regular UB for older workers, which is exploited in a difference-in-differences setting. The results provide evidence for a decrease in days in UB, an increase in days in employment, and an increase in days in unemployment assistance. The effects on UB and employment are smaller and the effects on unemployment assistance are larger for unemployed and non-employed individuals than for individuals who were employed before medical rehabilitations.

ZeitschriftLabour - Review of labour economics and industrial relations
Seiten (von - bis)367-388
Anzahl der Seiten22
PublikationsstatusErschienen - 01.09.2022

Bibliographische Notiz

Funding Information:
We thank participants at the 2018 Annual Meeting of the American Economic Association, the 4th Annual Conference of the International Association for Applied Econometrics, the 32nd Annual Conference of the Italian Association of Labour Economists, the 29th Annual Conference of the Italian Society of Public Economics, the 30th Annual Conference of the European Association of Labour Economists, the 33rd Annual Congress of the European Economic Association, Research Colloquium at Paderborn University, Research Colloquium at the Leuphana University Lueneburg, Ausschuss für Sozialpolitik 2018, Gesine Stephan, Steffen Müller, Peter Haan, and two referees of this journal for helpful comments. Open Access funding enabled and organized by Projekt DEAL.

Publisher Copyright:
© 2022 The Authors. LABOUR published by Fondazione Giacomo Brodolini and John Wiley & Sons Ltd.