Adjustment on German unemployment insurance system and its theoretical foundation

Germany has adjusted the unemployment insurance system by a series of measures,such as investing more fund in employment promoting,debasing the benefit level,shortening the duration of benefit and changing the benefit mode.The measures are taken to promote employment under the circumstance of high unemployment rate in Germany.This paper states that the measures are according to the studies in the field of the impact on employment of human capital,benefit level,the duration of benefit and benefit mode.