Shortening the Potential Duration of Unemployment Benefits and Labor Market Outcomes: Evidence from a Natural Experiment in Germany

Petrunyk, Inna; Pfeifer, Christian

doi:10.2139/ssrn.3117304

Cited by 2 publications

(7 citation statements)

References 30 publications

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“…1 See Petrunyk et al (2015) and Reichert et al (2015) for a more detailed description of medical rehabilitation in Germany and its determinants. 2 See Petrunyk and Pfeifer (2018) for a more comprehensive review of the literature. A recent review on the elasticity of unemployment duration to the potential duration of unemployment benefits can be found in Lopes (2022).…”

Section: Endnotesmentioning

confidence: 99%

“…Moreover, the outcome year is always the year after the medical rehabilitation has been completed, i.e., rehabilitation exit has officially been registered until December 31 in the year before the outcome year. 5 In Petrunyk and Pfeifer (2018), we present graphical illustrations of the treatment effects for each year of age, i.e., for interaction terms with all age dummies and the post-reform year 2007. The results support the results for more aggregated age groups reported in this paper.…”

Section: Endnotesmentioning

confidence: 99%

“…But the core identifying assumption in this DID approach is that time trends between control and treatment group do not differ before the reform was implemented. Because our preferred sample A only includes one pre‐reform year 2005, we have checked the common trend assumption for our sample B with the pre‐reform years 2004 and 2005 in more detail (including graphical illustrations) in Petrunyk and Pfeifer (2018). In this paper (see Section 6.2), we simply show that the pre‐reform trends in our outcome variables do not differ between control and treatment groups in our DID regression framework.…”

Section: Did Design and Variablesmentioning

confidence: 99%

“…5 5 In Petrunyk and Pfeifer (2018), we present graphical illustrations of the treatment effects for each year of age, i.e., for interaction terms with all age dummies and the post‐reform year 2007. The results support the results for more aggregated age groups reported in this paper. …”

mentioning

confidence: 99%

“…2 2 See Petrunyk and Pfeifer (2018) for a more comprehensive review of the literature. A recent review on the elasticity of unemployment duration to the potential duration of unemployment benefits can be found in Lopes (2022).…”

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confidence: 99%

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Diverse effects of shorter potential unemployment benefit duration on labor market outcomes in Germany

Petrunyk

Pfeifer

2022

Labour

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This paper explores diverse effects of an unemployment benefit (UB) reform in Germany on labor market outcomes of individuals with health impairment. The reform induced substantial reductions in potential duration of regular UB for older workers, which is exploited in a difference-in-differences setting. The results provide evidence for a decrease in days in UB, an increase in days in employment, and an increase in days in unemployment assistance. The effects on UB and employment are smaller and the effects on unemployment assistance are larger for unemployed and non-employed individuals than for individuals who were employed before medical rehabilitations.

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Section: Endnotesmentioning

confidence: 99%

Section: Endnotesmentioning

confidence: 99%

Section: Did Design and Variablesmentioning

confidence: 99%

mentioning

confidence: 99%

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confidence: 99%

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Diverse effects of shorter potential unemployment benefit duration on labor market outcomes in Germany

Petrunyk

Pfeifer

2022

Labour

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Potential duration of unemployment benefits and labor market outcomes for older workers with health impairments in Germany

Petrunyk

Pfeifer

2022

Bulletin of Econ Res

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This research note estimates the causal effects of a cut in the potential duration of regular unemployment benefits for older workers in Germany on the labor market outcomes of individuals with health impairments. The analyzed reform is a natural experiment that allows a difference-in-differences strategy with treatment intensity. The results provide evidence for a significant decrease in the number of days in regular unemployment benefits and an increase in the number of days in employment. However, the results also suggest a significant increase in the number of days in unemployment (social) assistance, which are granted upon exhaustion of regular unemployment benefits.

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Shortening the Potential Duration of Unemployment Benefits and Labor Market Outcomes: Evidence from a Natural Experiment in Germany

Cited by 2 publications

References 30 publications

Diverse effects of shorter potential unemployment benefit duration on labor market outcomes in Germany

Diverse effects of shorter potential unemployment benefit duration on labor market outcomes in Germany

Potential duration of unemployment benefits and labor market outcomes for older workers with health impairments in Germany

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