Duration of unemployment benefit according to the economic situation: Extended benefits on the test stand

Abstract

"In IAB-Forum Spezial 2009 IAB researchers subjected the German labour market to a 'crisis check'. In a further contribution on the same subject we discuss the suggestion of a flexible configuration of the duration of entitlement to unemployment insurance benefit I (ALG I), one that has been introduced by the prominent economic specialist Wolfgang Franz, among others. According to this, earnings-replacement benefits should be paid for a longer period of time during a recession but for a shorter period of time when the economy is booming. This is already done in the United States within the framework of so-called 'extended benefits'. The question is whether such an arrangement is both possible and sensible for the German labour market." (Authors' abstract, IAB-Doku) ((en))

Cite article

Dietz, M., Koch, S., Stephan, G., Stops, M., Walwei, U. & Wolff, J. (2009): Arbeitslosengelddauer nach wirtschaftlicher Lage: Extended Benefits auf dem Prüfstand. In: IAB-Forum No. 2, p. 96-103. DOI:10.3278/IFO0902W096