In 2005, the unemployment benefits for long-term unemployed were reduced in Germany. We investigate the effect of this reform on the transition probability from unemployment to employment using a large German administrative spell data set (SIAB 1975 - 2010). We estimate that the daily transition...

We examine whether income and unemployment risks are compensated by individual wages. Using a portfolio approach we show that the marginal income risk effect on wages is always positive whereas the marginal unemployment risk effect crucially depends on the income risk. The interaction effect...

In 2005, the unemployment compensation for long-term unemployed was reduced in Germany. We examine how this reform affected the transition probability to employment. Additionally, we inspect how this effect varies over unemployment duration. We estimate proportional hazard models using German...

Sowohl ein hoher Lohn als auch ein sicherer Arbeitsplatz werden von Arbeitnehmern als wünschenswert empfunden. Dieser Trade-off zwischen Sicherheit und Lohnhöhe wird für West- und Ostdeutschland separat untersucht. Dabei findet sich in Westdeutschland das Bild, dass unter Berücksichtigung...

We empirically investigate how two-tier unemployment compensation schemes affect the profile of re-employment hazards. We exploit the aggravation of an existing two-tier scheme in Germany in 2005 and estimate its impact on re-employment rates at different durations. For the short-term...