The distribution of unemployment duration in our equilibrium matching model with spell-dependent unemployment benefits displays a time-varying exit rate. Building on Semi-Markov processes, we translate these exit rates into an expression for the aggregate unemployment rate. Structural estimation...

Im Jahr 2000 wurden mit der Einführung von Arbeitslosengeld II (ALG II) die Sanktionsmöglichkeiten gegenüber ALG II-Empfängern verschärft. Der Beitrag untersucht die Auswirkung einer solchen ALG II-Sanktion auf den Reservationslohn sanktionierter ALG II-Empfänger. Empirisch sind die...

Unemployment insurance (UI) sanctions in the form of benefit reductions are intended to set disincentives for UI recipients to stay unemployed. Empirical evidence about the effects of UI sanctions in Germany is sparse. Using administrative data we investigate the effects of sanctions on the...

This paper proposes a new approach to evaluate the macroeconomic effects of the “Hartz IV” reform, which reduced the generosity of long-term unemployment benefits. We propose a model with different unemployment durations, where the reform initiates both a partial effect and an equilibrium...

In this paper we investigate the recent fall in unemployment, and the rise in part-time work and labour market participation amongst prime-aged Germans. We show that unemployment fell because the Hartz reforms induced a large fraction of the long-term unemployed to deregister as jobseekers....

This paper develops a partial equilibrium job search model to study the behavioral and welfare implications of an Unemployment Insurance (UI) scheme in which job search requirements are imposed on UI recipients with hyperbolic preferences. We show that, if the search requirements are well...

Bringing welfare recipients into jobs is a major goal of German labour market policy since a reform of the year 2005. Direct job creation providing participants with tem-porary subsidized jobs mainly in the non-profit sector plays an important role for achieving this goal. There are three...