Shortening the potential duration of unemployment benefits and labor market outcomes: Evidence from a natural experiment in Germany
Publikation: Arbeits- oder Diskussionspapiere und Berichte › Arbeits- oder Diskussionspapiere
Authors
This  paper  explores  the  effects  of  a  major  reform  of  unemployment  benefits  in  Germany  on  the labor market outcomes of individuals with some health impairment. The reform induced a substantial  reduction  in  the  potential  duration  of  regular  unemployment  benefits  for  older  workers.  This  work  analyzes  the  reform  in  a  wider  framework  of  institutional  interactions,  which  allows  us  to  distinguish  between  its  intended  and  unintended  effects.  Our  results  provide  causal  evidence  for  a  significant  decrease  in  the  number  of  days  in  unemployment  benefits  and  increase  in  the  number  of  days  in  employment.  However,  they  also  suggest  a  significant  increase  in  the  number  of  days  in  unemployment  assistance,  granted  upon  exhaustion  of  unemployment  benefits.  Transitions  to  unemployment  assistance  represent  an  unintended  effect,  limiting  the  success  of  a  policy  change  that  aims  to  increase  labor  supply  via reductions in the generosity of the unemployment insurance system. 
| Originalsprache | Englisch | 
|---|---|
| Erscheinungsort | Lüneburg | 
| Verlag | Institut für Volkswirtschaftslehre der Universität Lüneburg | 
| Anzahl der Seiten | 48 | 
| Publikationsstatus | Erschienen - 01.2018 | 
- SDG 8 – Anständige Arbeitsbedingungen und wirtschaftliches Wachstum
Ziele für nachhaltige Entwicklung
- Volkswirtschaftslehre
