The 2006 reform of unemployment benefit entitlement lengths in Germany: considerable effects on entry rates into unemployment

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. The authors apply a difference-in-differences approach to show that the highly disputed reform induced a considerable decline in unemployment incidence among older workers. Furthermore, they find a strong anticipation effect; unemployment entries of elderly workers peaked during the months preceding the reform." (Author's abstract, IAB-Doku) ((en))

Cite article

Dlugosz, S., Stephan, G. & Wilke, R. (2009): Verkürzte Bezugsdauern für Arbeitslosengeld: Deutliche Effekte auf die Eintritte in Arbeitslosigkeit. (IAB-Kurzbericht 30/2009), Nürnberg, 8 p.