Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/248837 
Year of Publication: 
2022
Series/Report no.: 
FAU Discussion Papers in Economics No. 01/2022
Publisher: 
Friedrich-Alexander-Universität Erlangen-Nürnberg, Institute for Economics, Nürnberg
Abstract: 
Our paper aims at improving the understanding for the role of public employment agencies in job matching. We analyze the effects of the restructuring of the Federal Employment Agency in Germany (Hartz III labor market reform) for aggregate matching and unemployment. Based on two microeconomic datasets, we show that the market share of the Federal Employment Agency as job intermediary declined after the Hartzreforms. We propose a macroeconomic model of the labor market with a private and a public search channel and fit the model to various dimensions of the data. We show that direct intermediation activities of the Federal Employment Agency did not contribute to the decline of unemployment in Germany. By contrast, improved activation of unemployed workers reduced unemployed by 0.7 percentage points.
Subjects: 
Hartz reforms
search and matching
reform of employment agency
JEL: 
E24
E00
E60
Document Type: 
Working Paper

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