Labor market reforms: An evaluation of the Hartz policies in Germany
How do workers and firms respond to comprehensive labor market reforms? We use detailed micro data to analyze the German Hartz Reforms through the lens of a structural model of the labor market. These reforms aimed at reducing unemployment, by increasing working hour flexibility, job matching and work incentives. In our setting, reforms directly affect the model parameters, which are estimated using matched data on 430,000 workers in 340,000 firms. Contrary to previous findings, our analysis shows that, although the reforms shortened the typical duration of unemployment, they did not reduce unemployment as a whole and led to a decline in wages. Low-skilled workers suffered the most in terms of employment and wage losses. Furthermore, we decompose the contribution of each reform wave to employment and wage changes, finding that the reduction in generosity of unemployment benefits was the principle driver in reducing wages.
|Author(s)||J. Bradley, A. Kügler|
|Year of publication||Mar, 2019|
|Journal||European Economic Review|
|Website / Document||Visit|
Neuste zugefügte Publikationen
- The platform economy and social law: Key issues in comparative perspective, 2019. I. Daugareilh, C. Degryse, P. Pochet.
- Critiquing the OECD’s Employment Protection Legislation Index for individual dismissals: The importance of procedural requirements, 2019. M. Harcourt, G. Gall, A.S. Raman, H. Lam, R. Croucher.
- Is Profit Sharing Productive? A Meta‐Regression Analysis, 2019. H. Doucouliagos, P. Laroche, D.L. Kruse, T. D. Stanley.
- Input to the Netherlands Independent Commission on the Regulation of Work, 2019. OECD.
- Labour Law and Welfare Systems in an Era of Demographic, Technological, and Environmental Changes, 2019. M. Tiraboschi.
- Zelfstandigen Enquête Arbeid 2019, 2019. CBS, TNO.
- Zijn platformcoöperaties levensvatbaar? 2019. M. Arets, K. Frenken.
- Minder maatschappelijke participatie bij onzeker werk, 2019. F. Dekker.
- Integratie door werk: meer kansen op werk voor nieuwkomers, 2019. SER.
- Een stapsgewijze vaststelling van de categorie uitwisselbare functies, 2019. R. Rietveld, K. van Haaren.