German Hartz IV reform boosts job prospects for medium wage earners.
The German Hartz IV reform in 2005 reduced unemployment benefits for long-term unemployed. After the reform, the chances of medium wage earners finding a job increased by 24%. This effect was less for low and high wage earners, with men and West Germans being less affected than women and East Germans. Short-term unemployed saw a growing positive impact over time, while long-term unemployed did not benefit much from the reform.