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dc.contributor.authorKrebs, Tomen_US
dc.contributor.authorScheffel, Martinen_US
dc.date.accessioned2010-09-15en_US
dc.date.accessioned2010-09-22T10:07:01Z-
dc.date.available2010-09-22T10:07:01Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/40164-
dc.description.abstractWe develop a tractable macroeconomic model with employment risk and labor market search in order evaluate the effects of labor market reform on unemployment, growth, and welfare. The model has a large number of risk-averse households who can invest in risk-free physical capital and risky human capital. Unemployed households receive unemployment benefits and decide how much search effort to exert. We present a theoretical characterization result that facilitates the computation of equilibria substantially. We calibrate the model to German data and use the calibrated model economy to simulate the macroeconomic effects of the German labor market reforms of 2005 and 2006 (Hartz Reforms). We find that the 2005-reform had large employment effects: the equilibrium unemployment rate has been reduced by approximately 1.1 percentage points from 7.5 to 6.4 percent. Moreover, the drop in unemployment has led to substantial output gains. Finally, employed and short-term unemployed households experienced significant welfare gains, whereas the long-term unemployed have lost in welfare terms. The effects of the 2006-reform are qualitatively similar, but quantitatively much smaller. We also show that the social welfare maximizing replacement rate is lower than the current (post-reform) replacement rate in Germany. However, implementing the optimal unemployment benefit system generates only small welfare gains.en_US
dc.language.isoengen_US
dc.publisherZentrum für Europäische Wirtschaftsforschung (ZEW) Mannheimen_US
dc.relation.ispartofseriesZEW Discussion Papers 10-050en_US
dc.subject.jelE24en_US
dc.subject.jelE60en_US
dc.subject.jelJ64en_US
dc.subject.jelJ65en_US
dc.subject.ddc330en_US
dc.subject.keyworddynamic general equilibriumen_US
dc.subject.keywordheterogenous agentsen_US
dc.subject.keywordhuman capitalen_US
dc.subject.keywordlabor market searchen_US
dc.subject.keywordunemployment insuranceen_US
dc.subject.keywordGerman labor market reformen_US
dc.subject.stwArbeitsmarktpolitiken_US
dc.subject.stwReformen_US
dc.subject.stwÖkonometrisches Makromodellen_US
dc.subject.stwDynamisches Gleichgewichten_US
dc.subject.stwTheorieen_US
dc.subject.stwHartz-Reformen_US
dc.subject.stwWirkungsanalyseen_US
dc.subject.stwWohlfahrtseffekten_US
dc.subject.stwSchätzungen_US
dc.subject.stwDeutschlanden_US
dc.titleA macroeconomic model for the evaluation of labor market reformsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn635130084en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:zewdip:10050-
Appears in Collections:ZEW Discussion Papers
Publikationen von Forscherinnen und Forschern des ZEW

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