Since many years the analysis of labor market policies in Germany is of high interest for researchers and politicians alike. Results are, however, in several cases contradictory or ignore important aspects. This research project applies recently developed flexible estimators that also take into account data quality problems. In our applications we use German administrative individual data of the Institute for Employment Research (IAB), Nuremberg. Data problems in these data often have a different nature than errors in survey data. We develop and implement in cooperation with projects [A3] and [A4] appropriate statistical models for unemployment duration and labor market transitions which also take into account the specific problems of the IAB data. This project focuses on the application and the implementation of these methods. Our analysis will therefore provide new insights to the understanding of micro- and macroeconomic labor market processes in Germany. We will derive empirically founded recommendations for labor market policy in Germany.