Advanced Search
MyIDEAS: Login

The German Labour Market Miracle

Contents:

Author Info

  • Jens Boysen-Hogrefe

    (Kiel Institute for the World Economy, Germany jens.hogrefe@ifw-kiel.de)

  • Dominik Groll

    (Kiel Institute for the World Economy, Germany dominik.groll@ifw-kiel.de)

Abstract

This paper lays out the various reasons for the exceptional performance of the German labour market during and after the Great Recession of 2008/9. The reference point of our analysis is provided by an empirical model of both total hours worked and employment. We conduct dynamic simulations of the crisis period to assess how surprising the reaction of the labour market really was. We argue that the most important precondition for the minor reaction of employment during this crisis was the pronounced wage moderation observed in the years before, which constitutes a distinct difference to all other recessions in Germany. Beyond that, the flexibility of adjusting working time, which has increased considerably during the past ten years, facilitated a tendency to labour hoarding. In contrast, short-time work plays a minor role in explaining the difference from previous recessions, since this instrument has always been available to firms in Germany and its use has not been extraordinary compared with earlier recessions.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://ner.sagepub.com/content/214/1/R38.abstract
Download Restriction: no

Bibliographic Info

Article provided by National Institute of Economic and Social Research in its journal National Institute Economic Review.

Volume (Year): 214 (2010)
Issue (Month): 1 (October)
Pages: R38-R50

as in new window
Handle: RePEc:sae:niesru:v:214:y:2010:i:1:p:r38-r50

Contact details of provider:
Postal: 2 Dean Trench Street, Smith Square, London SW1P 3HE
Phone: +44 (020) 7222 7665
Fax: +44 (020) 7654 1900
Web page: http://www.niesr.ac.uk/
More information through EDIRC

Related research

Keywords: Labour market; Great Recession; employment; wage moderation; short-time work;

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Michael C. Burda & Jennifer Hunt, 2011. "What Explains the German Labor Market Miracle in the Great Recession?," SFB 649 Discussion Papers SFB649DP2011-031, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  2. Alexander Herzog-Stein & Fabian Lindner & Simon Sturn, 2013. "Explaining the German Employment Miracle in the Great Recession – The Crucial Role of Temporary Working Time Reductions," IMK Working Paper 114-2013, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
  3. Richard B. Freeman, 2013. "Failing the Test? The Flexible U.S. Job Market in the Great Recession," NBER Working Papers 19587, National Bureau of Economic Research, Inc.
  4. Boysen-Hogrefe, Jens, 2013. "Wie der Staat 2010 bis 2012 konsolidiert hat," Kiel Policy Brief 62, Kiel Institute for the World Economy (IfW).
  5. Boysen-Hogrefe, Jens & Gern, Klaus-Jürgen & Jannsen, Nils & Plödt, Martin & Van Roye, Björn & Scheide, Joachim & Schwarzmüller, Tim & Groll, Dominik & Kooths, Stefan, 2011. "Weltkonjunktur und deutsche Konjunktur im Winter 2011," Kiel Discussion Papers 498/499, Kiel Institute for the World Economy (IfW).
  6. Schrader, Klaus & Laaser, Claus-Friedrich, 2012. "Die Krise in Südeuropa oder die Angst vor dem Dominoeffekt: Griechenland, Portugal und Spanien im Krisentest," Kiel Discussion Papers 500/501, Kiel Institute for the World Economy (IfW).
  7. Jennifer Hunt, 2012. "Flexible Work Time in Germany: Do Workers Like It and How Have Employers Exploited It over the Cycle?," SOEPpapers on Multidisciplinary Panel Data Research 489, DIW Berlin, The German Socio-Economic Panel (SOEP).
  8. Dieter Hundt & Frank-Jürgen Weise & Hagen Lesch & Wolfgang Lechthaler & Christian Merkl, 2012. "Eurokrise, Energiewende, Konjunkturabkühlung: Ende des deutschen Jobwunders?," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 65(01), pages 03-13, 01.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:sae:niesru:v:214:y:2010:i:1:p:r38-r50. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.