Unemployment Benefits and the Duration of Unemployment in East Germany
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IZA Seminar

Place: Schaumburg-Lippe-Str. 9, 53113 Bonn

Date: 11.03.2003, 12:15 - 13:30

   

Presentation by 

 Joachim Wolff (Institute for Employment Research (IAB), Nuremberg)
   

Abstract:

This paper studies the impact of unemployment benefits on unemployment
duration for East Germany using data from the German Socio-Economic
Panel. It concentrates on exit from unemployment into employment. Estimation
results of a discrete-time hazard rate model imply that moderate cuts in
the replacement rate raise the hazards by little. After six months of unemployment,
the replacement rate has no effect on the hazards of men. The threat of
periods of benefit sanction could explain this. The hazards are not generally
declining in time until exhausting unemployment insurance (UI) benefits, but
rise just prior to exhausting UI.
   
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