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Inhaltsbereich: Institut für Arbeitsmarkt- und Berufsforschung

Fixing the leak: Unemployment incidence before and after the 2006 reform of unemployment benefits in Germany

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Abstract

"From 2002 - 2004, the German government passed several laws that curtailed the generosity of the unemployment compensation system. One of the most ambitious changes was a considerable reduction in unemployment benefit entitlement lengths for older unemployed, which was effective during 2006 and 2007. We apply a difference-in-differences approach to show that the highly disputed reform induced a considerable decline in unemployment incidence among older workers. It thus sealed an important leak in the unemployment insurance system. Furthermore, we find a strong anticipation effect; unemployment entries of elderly workers peaked during the months preceding the reform." (Author's abstract, IAB-Doku) ((en))

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Dlugosz, Stephan; Stephan, Gesine; Wilke, Ralf A. (2009): Fixing the leak: Unemployment incidence before and after the 2006 reform of unemployment benefits in Germany. (IAB-Discussion Paper, 25/2009), N├╝rnberg, 29 p.
 

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