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Unemployment Compensation and Wages: Evidence from the German Hartz Reforms

  • Stefan Arent EMAIL logo and Wolfgang Nagl
Published/Copyright: March 16, 2016

Summary

Using the introduction of fixed unemployment assistance in Germany in 2005 as a unique natural experiment, we find strong evidence that decreased unemployment compensation has an adverse effect on wages. We use micro panel data to identify and estimate the effect of this structural break. In eastern and western Germany, the relative effect is higher for women. In western Germany, the relative effect increases with skill level. In eastern Germany, there is no clear skill-specific pattern.


Code and Datasets

The author(s) published code and data associated with this article in the ZBW Journal Data Archive, a storage platform for datasets. See: https://doi.org/10.15456/jbnst.2015050.080654.


Online erschienen: 2016-3-16
Erschienen im Druck: 2013-8-1

© 2013 by Lucius & Lucius, Stuttgart

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