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Kiel Institute for World Economics Kiel Working Papers, Kiel Institute for World Economics

No 1171:
Die Reform der Arbeitslosenversicherung im Zuge der Agenda 2010 und ihr Einfluss auf die Arbeitslosigkeitsdauer; Simulationsergebnisse auf Basis der nicht-stationären Suchtheorie

Björn Christensen

Abstract: This paper examines the impacts on reservation wages of unemployed persons and on transition in employment due to the reform of the unemployment insurance system in Germany in the course of the Agenda 2010. A dynamic search model is developed, on which reservation wages are simulated for different groups of unemployed. Based on this, increases in the transition rates in employment are forecasted due to the reductions in reservation wages. It is shown that the reform of the unemployment transfer payments mainly affect unemployed persons with a high income before unemployment. For these persons the transition rates in employment are increased by 5% to 9% if they are eligible for social welfare. For unemployed persons without eligibility for social welfare the transition rates in employment are increased by 9% to 22%.

Keywords: Agenda 2010, Arbeitslosigkeitsdauer, Reservationslöhne, Simulationen, Suchtheorie; (follow links to similar papers)

39 pages, June 2003

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