Macroeconomic Evaluation of Labor Market Reform in Germany

Tom Krebs, Martin Scheffel

Forskningsoutput: TidskriftsbidragArtikelVetenskapligPeer review

42 Citeringar (Scopus)

Sammanfattning

In 2003–05 the German government implemented a number of far-reaching labor market reforms, the so-called Hartz reforms. At the heart of the reform package was the Hartz IV law, which resulted in a significant cut in the unemployment benefits for the long-term unemployed. The paper develops a macroeconomic model with search and incomplete markets, calibrates the model economy to German data and institutions, and uses the calibrated model economy to simulate the effects of the Hartz reforms, and in particular Hartz IV, on the German labor market. The paper finds that the Hartz IV reform reduced the noncyclical unemployment rate in Germany by 1.4 percentage points. Employed workers benefited from the Hartz IV reform in welfare terms, but unemployed workers lost. It further finds that the Hartz I–III reforms reduced the noncyclical unemployment rate in Germany by 1.5 percentage points. Finally, the authors’ analysis suggests that the Hartz reforms contributed to the good performance of the German labor market during the Great Recession.
OriginalspråkEngelska
Referentgranskad vetenskaplig tidskriftIMF Economic Review
Volym61
Utgåva4
Sidor (från-till)664-701
ISSN2041-4161
DOI
StatusPublicerad - 2013
MoE-publikationstypA1 Originalartikel i en vetenskaplig tidskrift

Fingeravtryck

Fördjupa i forskningsämnen för ”Macroeconomic Evaluation of Labor Market Reform in Germany”. Tillsammans bildar de ett unikt fingeravtryck.

Citera det här