Did the Hartz Reforms Speed-Up Job Creation? A Macro-Evaluation Using Empirical Matching Functions
Journal
German Economic Review
ISSN
1465-6485
ISSN-Digital
1468-0475
Type
journal article
Date Issued
2009-08-01
Author(s)
Sunde, Uwe
;
Fahr, René
Abstract
Starting in January 2003, Germany implemented the first two so-called Hartz reforms, followed by the third and fourth packages of Hartz reforms in January 2004 and January 2005, respectively. The aim of these reforms was to accelerate labor market flows and reduce unemployment duration. Without attempting to evaluate the specific components of these Hartz reforms, this paper provides a first attempt to evaluate the overall effectiveness of the first two reform waves, Hartz I/II and III, in speeding up the matching process between unemployed and vacant jobs. The analysis is conceptually rooted in the flow-based view underlying the reforms, estimating the structural features of the matching process. The results indicate that the reforms indeed had an impact in making the labor market more dynamic and accelerating the matching process.
DOI: 10.1111/j.1468-0475.2008.00457.x
DOI: 10.1111/j.1468-0475.2008.00457.x
Language
English
Keywords
empirical matching function
stock-flow matching
Hartz reform
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Wiley-Blackwell
Volume
10
Number
3
Start page
284
End page
316
Pages
33
Subject(s)
Division(s)
Eprints ID
51826