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Unemployment in Germany: Reasons and Remedies

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Author Info
Norbert Berthold
Rainer Fehn ()
Abstract

This paper discusses the reasons for the dismal labor market performance of Germany over the last three decades along with potential remedies. It argues that labor market rigidities along with a generous welfare state in conjunction with certain changes in the economic environment are important in explaining this development but cannot solely account for it. Barriers to entrepreneurship, to setting up new firms and to innovations which are prevalent on goods and capital markets also play an important role in explaining the lackluster German economic performance of which rising unemployment is only one part. Comprehensive institutional reforms are therefore called for.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 871.

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Date of creation: 2003
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Handle: RePEc:ces:ceswps:_871

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Related research
Keywords: unemployment; Germany; labor market reforms; venture capital; innovations;

Find related papers by JEL classification:
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
J00 - Labor and Demographic Economics - - General - - - General

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Miltiades N. Georgiou & Nicholas Kyriazes, 2006. "Banking Entrepreneurship Differentials between Europe and USA. A Note," Papers on Entrepreneurship, Growth and Public Policy 2006-17, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
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This page was last updated on 2009-11-3.

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