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|
Newsletter Woche 12 - 2019
- The dynamism of the new economy: Non-standard employment and access to social security in EU-28, 2019. S. Avlijaš.
- Work on demand: Recurrence, effects and challenges, 2018. I. Biletta, C. Cerf.
- Labor market reforms: An evaluation of the Hartz policies in Germany, 2019. J. Bradley, A. Kügler.
- Job quality in European employment policy: one step forward, two steps back? 2019. A. Piasna, B. Burchell, K. Sehnbruch.
- The quest for sustainable employment: Challenges faced by young people during the job‐search process, 2019. K. Moore.
- Deliveroo: terecht bezorgd, 2019. P. Th. Sick.
- Loopbanen van startende zzp'ers in Nederland, 2018. L. Kösters, J. Michiels.
- Op de drempel van arbeidsongeschiktheid, 2019. UWV.
- Platformwerk, besluitvorming door algoritmen en bewijs van algoritmische discriminatie, 2019. M. Kullmann.
- Gevolgen van marktdifferentiatie voor diversiteit, inclusie en kansengelijkheid in kindercentra, een vergelijkende casestudy, 2019. W. van der Werf, P. Slot, P. Kenis, P. Leseman.