Unemployment Benefit and Wages: The Impact of the Labor Market Reform in Germany on (Reservation) Wages

In this paper, we contribute to the literature on the impact of the unemployment benefit on (reservation) wages. We use the German BA-Employment Panel (2008) to identify the effect of a reduced unemployment benefit due to the labor market reform of 2005 in Germany. Using this unique experiment, we find strong evidence that a lower unemployment benefit has an adverse effect on wages.

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Year of publication:	2011
Authors:	Arent, Stefan ; Nagl, Wolfgang
Institutions:	ifo Leibniz-Institut für Wirtschaftsforschung an der Universität München e.V.
Subject:	Unemployment benefit \| reservation wages \| wages

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Extent:	application/pdf
Series:	Ifo Working Paper Series.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number Ifo Working Paper No. 101
Classification:	J64 - Unemployment: Models, Duration, Incidence, and Job Search ; J65 - Unemployment Insurance; Severance Pay; Plant Closings
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009143963