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Titel
Shortening the potential duration of unemployment benefits and labor market outcomes: evidence from a natural experiment in Germany / Inna Petrunyk (Leuphana University Lueneburg), Christian Pfeifer (Leuphana University Lueneburg and IZA) ; IZA Institute of Labor Economics
VerfasserPetrunyk, Inna In der Gemeinsamen Normdatei der DNB nachschlagen ; Pfeifer, Christian In der Gemeinsamen Normdatei der DNB nachschlagen
KörperschaftForschungsinstitut zur Zukunft der Arbeit In der Gemeinsamen Normdatei der DNB nachschlagen
ErschienenBonn, Germany : IZA Institute of Labor Economics, January 2018
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Elektronische Ressource
Umfang1 Online-Ressource (48 Seiten) : Diagramme
SerieDiscussion paper ; no. 11300
URNurn:nbn:de:hbz:5:2-148666 Persistent Identifier (URN)
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Shortening the potential duration of unemployment benefits and labor market outcomes: evidence from a natural experiment in Germany [0.28 mb]
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Zusammenfassung

This paper explores the effects of a major reform of unemployment benefits in Germany on the labor market outcomes of individuals with some health impairment. The reform induced a substantial reduction in the potential duration of regular unemployment benefits for older workers. This work analyzes the reform in a wider framework of institutional interactions, which allows us to distinguish between its intended and unintended effects. Our results provide causal evidence for a significant decrease in the number of days in unemployment benefits and increase in the number of days in employment. However, they also suggest a significant increase in the number of days in unemployment assistance, granted upon exhaustion of unemployment benefits. Transitions to unemployment assistance represent an unintended effect, limiting the success of a policy change that aims to increase labor supply via reductions in the generosity of the unemployment insurance system.