Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/123116 
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper No. 5477
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
By how much does an increase in operating effectiveness of a public employment agency (PEA) and a reduction of 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 reduction explains just about 5% of the observed decline. Due to disincentive effects resulting from the reform, the reform of the PEA could have had an even higher impact on unemployment reduction if there had been less focus on long-term unemployed workers.
Subjects: 
employment agencies
unemployment benefits
labour market reform
unemployment
structural model
JEL: 
E24
J65
J68
Document Type: 
Working Paper
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