Evaluating the German 'Mini-Job' reform using a natural experiment

C-Tier
Journal: Applied Economics
Year: 2010
Volume: 42
Issue: 19
Pages: 2475-2489

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Increasing work incentives for people with low income is a common topic in the policy debate across European countries. The 'Mini-Job' reform in Germany had a similar motivation. We carry out an ex-post evaluation to identify the short-run effects of this reform. Our identification strategy uses an exogenous variation in the interview months in the Socio-Economic Panel Study (SOEP), which allows us to distinguish groups that are affected by the reform from those who are not. To account for seasonal effects we additionally use a Difference-In-Differences (DID) strategy. Descriptives show that there is a post-reform increase in the number of mini-jobs. However, we show that this increase cannot be causally related to the reform, since the short-run effects are very limited. Only single men seem to react immediately and increase secondary job holding.

Technical Details

RePEc Handle
repec:taf:applec:v:42:y:2010:i:19:p:2475-2489
Journal Field
General
Author Count
2
Added to Database
2026-01-25