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Reform of Unemployment Compensation in Germany

A Nonparametric Bounds Analysis Using Register Data

Bibliographic Data

ID19418232
AuthorsSokbae Lee (0000-0003-4080-7733, Institute for Fiscal Studies), Ralf A Wilke (0000-0002-6105-6345, University of Nottingham)
Year2009
Volume27
Issue2
Pages193-205
Publication date2009-04-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of Business and Economic Statistics (JOURNAL)
Journal identifiersISSN: 0735-0015 • E-ISSN: 1537-2707
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1198/jbes.2009.0014
OpenAlexW3123287087
LanguageEN
Citations received2
References cited24

Economic theory suggests that an extension of the maximum length of entitlement for unemployment benefits increases the duration of unemployment. Empirical results for the reform of the unemployment compensation system in Germany during the 1980s are less clear. The analysis in this article is motivated by recent developments in econometrics for partial identification. We use extensive administrative data with the drawback that we can only observe lower and upper bounds for the true unemployment duration. For this reason we bound the reform effect on unemployment duration taking account of the fact that observed unemployment spells are only interval data. We identify a systematic increase in unemployment duration in response to the reform in samples that amount to about 10% of the unemployment spells for the treatment group.KEY WORDS:: Interval dataNonparametric bounds analysisPartial identificationTreatment effectUnemployment duration

Demographic economics · Econometrics · Economics · Full employment · Labour economics · Macroeconomics · Microeconomics · Nonparametric statistics · Unemployment · Advanced Causal Inference Techniques · Labor market dynamics and wage inequality · Mathematics · Psychology · Statistical Methods and Inference

  • Unemployment Duration in Germany

    Melanie Arntz, Ralf A Wilke•Regional Studies•2008

  • Unemployment Benefit Exhaustion

    Open Access•Trine Filges, Lars Pico Geerdsen et al.•Research on Social Work Practice•2014

  • Monotone Instrumental Variables

    Charles F Manski, John V Pepper•Econometrica•2000

  • Identification and Inference in Nonlinear Difference-in-Differences Models

    Open Access•Susan Athey, Guido W Imbens•Econometrica•2006

  • The impact of the potential duration of unemployment benefits on the duration of unemployment

    Open Access•Lawrence F Katz, Bruce D Meyer et al.•Journal of Public Economics•1990

  • Semiparametric Difference-in-Differences Estimators

    Alberto Abadie•The Review of Economic Studies•2005

  • Confidence Intervals for Partially Identified Parameters

    Open Access•Guido W Imbens, Charles F Manski•Econometrica•2004

  • Unemployment Durations in West Germany Before and After the Reform of the Unemployment Compensation System during the 1980s

    Open Access•Bernd Fitzenberger, Ralf A Wilke•German Economic Review•2010

Unique citing works2
Citations per year0,11
Citation span2008 - 2014 (7)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 1

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