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Germany: Selected Issues

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  • International Monetary Fund

Abstract

This Selected Issues paper analyzes labor market asymmetries and macroeconomic adjustment in Germany. Empirical work reported shows that in Germany, negative demand shocks increase the unemployment rate by more than the decrease in the unemployment rate caused by a comparable-sized positive demand shock. The contribution of labor costs to explaining the high level of unemployment, particularly since unification, is studied. Empirical estimates are obtained for the wage gap—the deviation of actual labor costs from warranted labor costs based on estimated production functions assuming competitive factor markets and full employment.

Suggested Citation

  • International Monetary Fund, 1997. "Germany: Selected Issues," IMF Staff Country Reports 1997/101, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:1997/101
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    Cited by:

    1. Hinze, Jorg, 2000. "Relation zwischen Bruttoarbeitskosten und Nettolohnen," Report Series 26066, Hamburg Institute of International Economics.
    2. Hinze, Jörg, 2000. "Relation zwischen Bruttoarbeitskosten und Nettolöhnen," HWWA Reports 202, Hamburg Institute of International Economics (HWWA).

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