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Labor Market Reforms and the Great Recession

Author

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  • Zimmermann, Klaus F.

    (University of Bonn)

Abstract

Germany can be regarded as a showcase for labor market reforms. Moreover, its labor market responded only mildly to the Great Recession. This paper assesses the role of the labor market reforms for the latter development. Against this background, general lessons are drawn from the German experience that include, for example, placing a greater emphasis on work incentives, individual responsibility and flexibility in combination with a solid level of social cohesion. Although it is clear that there is no one-size-fits-all solution, models and approaches that are developed for a specific country context can draw upon a number of features of the German model.

Suggested Citation

  • Zimmermann, Klaus F., 2013. "Labor Market Reforms and the Great Recession," IZA Policy Papers 75, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izapps:pp75
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    File URL: https://docs.iza.org/pp75.pdf
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    References listed on IDEAS

    as
    1. Ulf Rinne & Klaus F Zimmermann, 2013. "Is Germany the North Star of Labor Market Policy?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 61(4), pages 702-729, December.
    2. Karl BRENKE & Ulf RINNE & Klaus F. ZIMMERMANN, 2013. "Short-time work: The German answer to the Great Recession," International Labour Review, International Labour Organization, vol. 152(2), pages 287-305, June.
    3. Werner Eichhorst & Klaus F. Zimmermann, 2007. "And Then There Were Four...How Many (and Which) Measures of Active Labor Market Policy Do We Still Need?," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 53(3), pages 243-272.
    4. repec:hal:spmain:info:hdl:2441/7k0plsobem9tuo09eg04jujb9a is not listed on IDEAS
    5. Pierre Cahuc & Stéphane Carcillo & Ulf Rinne & Klaus Zimmermann, 2013. "Youth unemployment in old Europe: the polar cases of France and Germany," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.
    6. Werner Eichhorst & Klaus F. Zimmermann, 2007. "And Then There Were Four ...: How Many (and Which) Measures of Active Labor Market Policy Do We Still Need? ; Finding a Balance after the Evaluation of the Hartz Reforms in Germany," Discussion Papers of DIW Berlin 685, DIW Berlin, German Institute for Economic Research.
    7. Ulf Rinne & Klaus Zimmermann, 2012. "Another economic miracle? The German labor market and the Great Recession," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-21, December.
    8. Karl Brenke & Kai-Uwe Müller, 2013. "Gesetzlicher Mindestlohn: kein verteilungspolitisches Allheilmittel," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 80(39), pages 3-17.
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    Cited by:

    1. Marek Antosiewicz & Piotr Lewandowski, 2014. "What if you were German? - DSGE approach to the Great Recession on labour markets," IBS Working Papers 1/2014, Instytut Badan Strukturalnych, revised Dec 2014.

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    More about this item

    Keywords

    internal flexibility; labor market institutions; unemployment; short-time work; Germany; economic crisis;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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