Shortening the potential duration of unemployment benefits and labor market outcomes: Evidence from a natural experiment in Germany

Research output: Working paperWorking papers

Standard

Shortening the potential duration of unemployment benefits and labor market outcomes: Evidence from a natural experiment in Germany. / Petrunyk, Inna; Pfeifer, Christian.
Lüneburg: Institut für Volkswirtschaftslehre der Universität Lüneburg, 2018. (University of Lüneburg Working Paper Series in Economics; No. 377).

Research output: Working paperWorking papers

Harvard

Petrunyk, I & Pfeifer, C 2018 'Shortening the potential duration of unemployment benefits and labor market outcomes: Evidence from a natural experiment in Germany' University of Lüneburg Working Paper Series in Economics, no. 377, Institut für Volkswirtschaftslehre der Universität Lüneburg, Lüneburg.

APA

Petrunyk, I., & Pfeifer, C. (2018). Shortening the potential duration of unemployment benefits and labor market outcomes: Evidence from a natural experiment in Germany. (University of Lüneburg Working Paper Series in Economics; No. 377). Institut für Volkswirtschaftslehre der Universität Lüneburg.

Vancouver

Petrunyk I, Pfeifer C. Shortening the potential duration of unemployment benefits and labor market outcomes: Evidence from a natural experiment in Germany. Lüneburg: Institut für Volkswirtschaftslehre der Universität Lüneburg. 2018 Jan. (University of Lüneburg Working Paper Series in Economics; 377).

Bibtex

@techreport{56e7b96bb7d74b2b9017f376adb508df,
title = "Shortening the potential duration of unemployment benefits and labor market outcomes: Evidence from a natural experiment in Germany",
abstract = "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. ",
keywords = "Economics",
author = "Inna Petrunyk and Christian Pfeifer",
year = "2018",
month = jan,
language = "English",
series = "University of L{\"u}neburg Working Paper Series in Economics",
publisher = "Institut f{\"u}r Volkswirtschaftslehre der Universit{\"a}t L{\"u}neburg",
number = "377",
type = "WorkingPaper",
institution = "Institut f{\"u}r Volkswirtschaftslehre der Universit{\"a}t L{\"u}neburg",

}

RIS

TY - UNPB

T1 - Shortening the potential duration of unemployment benefits and labor market outcomes

T2 - Evidence from a natural experiment in Germany

AU - Petrunyk, Inna

AU - Pfeifer, Christian

PY - 2018/1

Y1 - 2018/1

N2 - 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.

AB - 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.

KW - Economics

UR - https://www.leuphana.de/en/institutes/ivwl/publications/working-papers/2018.html

M3 - Working papers

T3 - University of Lüneburg Working Paper Series in Economics

BT - Shortening the potential duration of unemployment benefits and labor market outcomes

PB - Institut für Volkswirtschaftslehre der Universität Lüneburg

CY - Lüneburg

ER -

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