Macroeconomic Evaluation of Labor Market Reform in Germany ∗

  • Tom Krebs, Martin Scheffel ETH Zuerich
  • Published 2012


In 2005 the German government implemented the so-called Hartz IV reform, which amounted to a complete overhaul of the German unemployment insurance system and resulted in a significant reduction in unemployment benefits for the long-term unemployed. In this paper, we use an incomplete-market model with search unemployment to evaluate the macro-economic and… (More)

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