The German Labor Market Reforms and Post-Unemployment Earnings

Released on by Niklas Engbom
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  • The German Labor Market Reforms and Post-Unemployment Earnings Book Detail

  • Author : Niklas Engbom
  • Release Date : 2015-07-17
  • Publisher : International Monetary Fund
  • Genre : Business & Economics
  • Pages : 26
  • ISBN 13 : 1513531255
  • File Size : 96,96 MB
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The German Labor Market Reforms and Post-Unemployment Earnings by Niklas Engbom PDF Summary

Book Description: In 2003–05, Germany undertook extensive labor market reforms which were followed by a large and persistent decline in unemployment. Key elements of the reforms were a drastic cut in benefits for the long-term unemployed and tighter job search and acceptance obligations. Using a large confidential data set from the German social security administration, we find that the reforms were associated with a fall in the earnings of workers returning to work from short-term unemployment relative to workers in long-term employment of about 10 percent. We interpret this as evidence that the reforms strengthened incentives to return to work but, in doing so, they adversely affected post re-entry earnings.

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"Having faced high unemployment rates for more than a decade, the German government implemented a comprehensive set of labour market reforms during the period 2