Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/27587 
Year of Publication: 
2008
Series/Report no.: 
ZEW Discussion Papers No. 08-105
Publisher: 
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim
Abstract: 
With the purpose to reduce winter unemployment and to promote all-season employment in the constructions sector, Germany maintains an extensive bad weather allowance system. Since the mid 1990s, these regulations have been subject to several reforms that resemble the range of approaches for employment promotion which can be found in other European countries. We analyse the effect of these reforms on individual unemployment risks using large individual administrative data merged with information about local weather conditions and the business cycle. We find a weaker direct link between seasonal layoffs and actual weather than broadly assumed, since most of the layoffs take place at fixed dates. The reforms under consideration have economically plausible effects; Regulations that limit an employer's financial burden reduce transitions to unemployment and render it less weather-dependent.
Subjects: 
panel data
temporary layoffs
employment stability
JEL: 
J38
J48
J68
Document Type: 
Working Paper

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