Welfare benefit recipients in Germany: Unemployment dynamics during the Covid-19 pandemic

Abstract

"The Covid-19 pandemic has been challenging social security systems such as the German welfare benefit system labeled as Unemployment Benefit II (UBII). The article analyses the UBII entries and exits of unemployed people by individual characteristics and economic sectors as well as their participation in active labour market programmes during the Corona crisis. Using aggregate administrative data, we find that lower exit rates from unemployment drive the Corona-related change in unemployment for UBII recipients more strongly than for the average unemployed. Underlining the importance of education, those most strongly affected in their employment opportunities are UBII recipients without a vocational degree. Furthermore, the sectors accommodation & food service and temporary work agencies, which normally provide employment opportunities for welfare recipients, are the most affected by the Corona crisis." (Author's abstract, IAB-Doku) ((en))

Cite article

Hohmeyer, K., Dengler, K., Knize, V. & Pongratz, T. (2021): Welfare benefit recipients in Germany: Unemployment dynamics during the Covid-19 pandemic. (LASER discussion papers 132), Erlangen, 30 p.