Unemployment Benefit and Wages: The Impact of the Labor Market Reform in Germany on (Reservation) Wages

In this paper, we contribute to the literature on the impact of the unemployment benefit on (reservation) wages. We use the German BA-Employment Panel (2008) to identify the effect of a reduced unemployment benefit due to the labor market reform of 2005 in Germany. Using this unique experiment, we find strong evidence that a lower unemployment benefit has an adverse effect on wages.

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Year of publication:	2011
Authors:	Arent, Stefan ; Nagl, Wolfgang
Publisher:	Munich : ifo Institute - Leibniz Institute for Economic Research at the University of Munich
Subject:	Arbeitslosenversicherung \| Anspruchslohn \| Hartz-Reform \| Lohn \| Deutschland \| Unemployment benefit \| reservation wages \| wages

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Series:	ifo Working Paper ; 101
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	662800419 [GVK] hdl:10419/73710 [Handle] RePec:ces:ifowps:_101 [RePEc]
Classification:	J64 - Unemployment: Models, Duration, Incidence, and Job Search ; J65 - Unemployment Insurance; Severance Pay; Plant Closings
Source:	EconStor

Persistent link: https://www.econbiz.de/10010312063