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The German labor market in the Great Recession: Shocks and institutions

Author

Listed:
  • Gehrke, Britta

    (Institute for Employment Research (IAB), Nuremberg, Germany ; Friedrich-Alexander Universität Erlangen-Nürnberg)

  • Lechthaler, Wolfgang

    (Kiel Institute for the World Economy)

  • Merkl, Christian

    (Friedrich-Alexander Universität Erlangen-Nürnberg ; Kiel Institute for the World Economy)

Abstract

"This paper analyzes Germany's unusual labor market experience during the Great Recession. We estimate a general equilibrium model with a detailed labor market block for postunification Germany. This allows us to disentangle the role of institutions (short-time work, government spending rules) and shocks (aggregate, labor market, and policy shocks) and to perform counterfactual exercises. We identify positive labor market performance shocks (likely caused by labor market reforms) as the key driver for the 'German labor market miracle' during the Great Recession." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Gehrke, Britta & Lechthaler, Wolfgang & Merkl, Christian, 2017. "The German labor market in the Great Recession: Shocks and institutions," IAB-Discussion Paper 201714, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:201714
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    References listed on IDEAS

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    Cited by:

    1. Peters, Jan Cornelius, 2016. "Quantifying the effect of labor market size on learning externalities," Economics Working Papers 2016-11, Christian-Albrechts-University of Kiel, Department of Economics.
    2. Burda Michael C. & Seele Stefanie, 2017. "Das deutsche Arbeitsmarktwunder: Eine Bilanz," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 18(3), pages 179-204, October.
    3. repec:hum:wpaper:sfb649dp2017-022 is not listed on IDEAS
    4. repec:cnb:ocpubv:as18 is not listed on IDEAS
    5. Britta Gehrke & Brigitte Hochmuth, 2021. "Counteracting Unemployment in Crises: Non‐Linear Effects of Short‐Time Work Policy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(1), pages 144-183, January.
    6. Casares, Miguel & Vázquez, Jesús, 2018. "Why are labor markets in Spain and Germany so different?," Economic Modelling, Elsevier, vol. 75(C), pages 320-335.

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; Hartz-Reform ; Arbeitslosigkeitsentwicklung ; institutionelle Faktoren ; Kurzarbeit ; öffentliche Ausgaben ; Rezession ; Arbeitsmarktentwicklung ; arbeitsmarktpolitische Maßnahme ; 1993-2013;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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