TY  - RPRT
        AU  - Carrillo-Tudela, Carlos
AU  - Launov, Andrey
AU  - Robin, Jean-Marc
        TI  - The Fall in German Unemployment: A Flow Analysis
        PY  - 2018/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 11442
        UR  - https://www.iza.org/publications/dp11442
        AB  - 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.
        KW  - income inequality
KW  - multiple job holding
KW  - non-participation
KW  - mini-jobs
KW  - part-time work
KW  - unemployment
KW  - Germany
KW  - Hartz reforms
        ER  -