Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/29636
Authors: 
Dlugosz, Stephan
Stephan, Gesine
Wilke, Ralf A.
Year of Publication: 
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

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