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Title:Fixing the leak: unemployment incidence before and after the 2006 reform of unemployment benefits in Germany PDF Logo
Authors:Dlugosz, Stephan
Stephan, Gesine
Wilke, Ralf A.
Issue Date:2009
Series/Report no.:ZEW Discussion Papers 09-079
Abstract:From 2002-2004, the German government passed several laws that curtailed the generosity of the unemployment compensation system. One of the most ambitious changes was a considerable reduction in unemployment benefit entitlement lengths for older unemployed, which was effective during 2006 and 2007. We apply a difference-in-differences approach to show that the highly disputed reform induced a considerable decline in unemployment incidence among older workers. It thus sealed an important leak in the unemployment insurance system. Furthermore, we find a strong anticipation effect; unemployment entries of elderly workers peaked during the months preceding the reform.
Subjects:unemployment incidence
policy evaluation
administrative data
JEL:J63
J65
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des ZEW
ZEW Discussion Papers

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