@TechReport{iza:izadps:dp11442, author={Carrillo-Tudela, Carlos and Launov, Andrey and Robin, Jean-Marc}, title={The Fall in German Unemployment: A Flow Analysis}, year={2018}, month={Mar}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={11442}, url={https://www.iza.org/publications/dp11442}, abstract={In this paper we investigate the recent fall in unemployment, and the rise in part-time work, labour market participation, inequality and welfare in Germany. Unemployment fell because the Hartz IV reform induced a large fraction of the long-term unemployed to deregister as jobseekers and appear as non-participants. Yet, labour force participation increased because many unregistered-unemployed workers ended up accepting low-paid part-time work that was offered in quantity in absence of a universal minimum wage. A large part of the rise in part-time work was also due to the tax benefits Hartz II introduced to take up a mini-job as secondary employment. This has provided an easy way to top-up labour income staggering under the pressure of wage moderation. The rise in part-time work led to an increase in inequality at the lower end of income distribution. Overall we find that Germany increased welfare as unemployment fell.}, keywords={income inequality;multiple job holding;non-participation;mini-jobs;part-time work;unemployment;Germany;Hartz reforms}, }