Front Matter Page
Research Department
Contents
1. Introduction
2. German Labor Market Reforms 2003-2005
2.1 Historical Background
2.2 Hartz III Reform
2.3 Hartz IV
2.4 Time Series Evidence
3. Model
3.1 Workers
3.2 Firms
3.3 Equilibrium
3.4 Equilibrium Characterization
3.5 Computation and Tractability
4. Cost of Recessions
4.1 Welfare Cost of Recessions
4.2 Output Cost of Recessions
4.3 A Decomposition
4.4 Labor Market Institutions and the Cost of Recessions
5. Calibration
5.1 General Specifications
5.2 Search Technology and Mean Transition Rates
5.3 Search Preferences and Search Elasticity
5.4 Skill Loss During Unemployment
5.5 Wage Growth and Wage Risk
5.6 Unemployment Benefits
5.7 Discount Factor and Cost of Financial Intermediation
5.8 Cyclical Variations in Job Finding and Job Destruction Rates
5.9 Unemployment and Output Dynamics during Recessions
6. Quantitative Results
6.1 Reform Effects on Model Parameters
6.2 Long-Run Reform Effects on Job Finding Rates and Unemployment
6.3 Reform Effects on Dynamic Response to Recession Shock
6.4 Output Cost of Recessions
6.5 Welfare Cost of Recessions
7. Robustness Analysis
7.1 Changes in Calibration Targets
7.2 Search and Matching with Vacancy Posting
7.3 Wedge between Micro-and Macro-Elasticity
7.4 Unemployment Insurance and Match Quality
8. Conclusion
References
Tables
1. Output Cost of Recessions
2. Welfare Cost of Recessions
3. Output Cost of Recessions – Diamond-Mortensen-Pissarides
Figures
1. Output during Pre-Reform Recessions and Great Recession
2. Average Net Replacement Rate 201-2010
3. Quarterly Job Finding Rates by Duration of Unemployment Spell 2000-2011
4. Beveridge Curve 2000-2015
5. Unemployment Rate 1970-2015
6. Cyclical Unemployment during Pre-Reform Recessions: Data and Model
7. Output during Pre-Reform Recessions: Date and Model
8. Cyclical Unemployment during Pre-Reform and Post-Reform Recessions
9. Output during Pre-Reform and Post-Reform Recessions