From 2002–2004, the German government passed several laws that curtailed the generosity of the unemployment … compensation system. One of the most ambitious changes was a considerable reduction in unemployment benefit entitlement lengths for … highly disputed reform induced a considerable decline in unemployment incidence among older workers. It thus sealed an …

of labor market reform on unemployment, growth, and welfare. The model has a large number of risk-averse households who … can invest in risk-free physical capital and risky human capital. Unemployed households receive unemployment benefits and … employment effects: the equilibrium unemployment rate has been reduced by approximately 1.1 percentage points from 7.5 to 6 …

This paper analyses the effects of a social assistance reform in Germany. In contrast to studies which are based on … reform on wages and unemployment. The simulation results show that general equilibrium wage reactions tend to mitigate labour …

We estimate the effects of the reform of the German Unemployment Insurance that replaced the wage related Unemployment … earn high wages and received high unemployment transfers lose most. The behavioural responses mitigate the redistributive …

duration of unemployment. Empirical results for the reform of the unemployment compensation system in Germany during the 1980s … unemployment is not directly observed. For this reason we bound the reform effect on unemployment duration over different … parametric model assumptions. We identify a systematic increase in unemployment duration in response to the reform in samples …

, it reduces unemployment by exerting downward pressure on wages. This trade-off is quantitatively assessed using a … numerical model for Germany. The model combines a microsimulation module, which captures the labour-supply decisions of … bargaining and involuntary unemployment. In the simulations carried out using this model, the optimal degree of tax progressivity …