New Insights on Unemployment Duration and Post Unemployment Earnings in Germany: Censored Box-Cox Quantile Regression at Work

Bernd Fitzenberger, Ralf Andreas Wilke

Research output: Contribution to journalArticlepeer-review


Building on non-stationary search theory (Mortensen, 1977; Van den Berg, 1990), this article estimates the effects of UB on unemployment durations and future earnings using unique administrative data in Germany. We apply censored Box–Cox quantile regression. Our results imply that the length of entitlement shows only a weak effect on unemployment duration for entitlement lengths up to 12 months and no effect on post unemployment earnings. There are noticeable effects on exits from unemployment for entitlement lengths above 12 months. A high wage replacement rate for low-wage earners is associated with a longer duration of unemployment and higher post unemployment earnings.
Original languageEnglish
Pages (from-to)794-826
Number of pages33
JournalOxford Bulletin of Economics and Statistics
Issue number6
Publication statusPublished - Dec 2010

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