unemployment benefits reduce unemployment? Using a recent labour market reform in Germany as background, we find that an enhanced … effectiveness of the PEA explains about 20% of the observed post-reform unemployment decline. The role of unemployment benefit … the PEA could have had an even higher impact on unemployment reduction if there had been less focus on long …

The effect of generous welfare benefits on unemployment is highly contested. The dominant perspective contends that … matches. Despite many studies of welfare benefits and unemployment, the literature has neglected how this relationship might … vary across institutional contexts. This article investigates how unemployment benefits and minimum income benefits affect …