Internformat: Macroeconomic Evaluation of Labor Market Reform in Germany

Macroeconomic Evaluation of Labor Market Reform in Germany:

In 2005 the German government implemented the so-called Hartz IV reform, which amounted to a complete overhaul of the German unemployment insurance system and resulted in a significant reduction in unemployment benefits for the long-term unemployed. In this paper, we use an incomplete-market model w...

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1. Verfasser:	Krebs, Tom (VerfasserIn)
Format:	Elektronisch E-Book
Sprache:	English
Veröffentlicht:	Washington, D.C International Monetary Fund 2013
Schriftenreihe:	IMF Working Papers Working Paper No. 13/42
Online-Zugang:	UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext
Zusammenfassung:	In 2005 the German government implemented the so-called Hartz IV reform, which amounted to a complete overhaul of the German unemployment insurance system and resulted in a significant reduction in unemployment benefits for the long-term unemployed. In this paper, we use an incomplete-market model with search unemployment to evaluate the macro-economic and welfare effects of the Hartz IV reform. We calibrate the model economy to German data before the reform and then use the calibrated model economy to simulate the effects of Hartz IV. In our baseline calibration, we find that the reform has reduced the long-run (noncyclical) unemployment rate in Germany by 1.4 percentage points. We also find that the welfare of employed households increases, but the welfare of unemployed households decreases even with moderate degree of risk aversion
Beschreibung:	1 Online-Ressource (42 p)
ISBN:	1589062701 9781589062702

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spelling	Krebs, Tom Verfasser aut Macroeconomic Evaluation of Labor Market Reform in Germany Krebs, Tom Washington, D.C International Monetary Fund 2013 1 Online-Ressource (42 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 13/42 In 2005 the German government implemented the so-called Hartz IV reform, which amounted to a complete overhaul of the German unemployment insurance system and resulted in a significant reduction in unemployment benefits for the long-term unemployed. In this paper, we use an incomplete-market model with search unemployment to evaluate the macro-economic and welfare effects of the Hartz IV reform. We calibrate the model economy to German data before the reform and then use the calibrated model economy to simulate the effects of Hartz IV. In our baseline calibration, we find that the reform has reduced the long-run (noncyclical) unemployment rate in Germany by 1.4 percentage points. We also find that the welfare of employed households increases, but the welfare of unemployed households decreases even with moderate degree of risk aversion Online-Ausg Scheffel, Martin Sonstige oth http://elibrary.imf.org/view/IMF001/20275-9781589062702/20275-9781589062702/20275-9781589062702.xml Verlag URL des Erstveröffentlichers Volltext
spellingShingle	Krebs, Tom Macroeconomic Evaluation of Labor Market Reform in Germany
title	Macroeconomic Evaluation of Labor Market Reform in Germany
title_auth	Macroeconomic Evaluation of Labor Market Reform in Germany
title_exact_search	Macroeconomic Evaluation of Labor Market Reform in Germany
title_exact_search_txtP	Macroeconomic Evaluation of Labor Market Reform in Germany
title_full	Macroeconomic Evaluation of Labor Market Reform in Germany Krebs, Tom
title_fullStr	Macroeconomic Evaluation of Labor Market Reform in Germany Krebs, Tom
title_full_unstemmed	Macroeconomic Evaluation of Labor Market Reform in Germany Krebs, Tom
title_short	Macroeconomic Evaluation of Labor Market Reform in Germany
title_sort	macroeconomic evaluation of labor market reform in germany
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MARC

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