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Mehr Beschäftigung, weniger Arbeitslosigkeit: Setzt sich das ökonomische Gesetz gegen (verbands-)politische Macht durch?

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  • Berthold Norbert

Abstract

For the last 25 years the performance of the German labor market has tremendously deteriorated. This development is caused by severe shortcomings due to an institutional mismatch. A widespread network of regulations between the labor market, the welfare state and the fiscal federalism setting is prompting collective moral hazard by trade unions and employer associations and prevents market forces from achieving high employment equilibrium. Unfortunately the current situation is a politico-economic equilibrium since the majority obstructs the necessary institutional reforms. Proposed solutions embracing interest groups like the „Bündnis für Arbeit“ are a cul-de-sac. In this respect globalization is a remedy. Increasing international trade and factor mobility lead to more heterogeneity of interests and strengthen the voice of those who engage for decentralisation, differentiation and competition.

Suggested Citation

  • Berthold Norbert, 2000. "Mehr Beschäftigung, weniger Arbeitslosigkeit: Setzt sich das ökonomische Gesetz gegen (verbands-)politische Macht durch?," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 51(1), pages 231-260, January.
    • Handle: RePEc:bpj:ordojb:v:51:y:2000:i:1:p:231-260:n:11
    DOI: 10.1515/ordo-2000-0111
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    References listed on IDEAS

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