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The Failure of the German Labor Market

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  • Horst Siebert
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    Abstract

    The paper analyzes why Germany experiences the high and sticky unemployment. It looks at wage policy and proposes a new approach to measure productivity growth when unemployment increases. It studies the position of trade unions and the institutional set-up of the labor market. It looks at the role of the reservation wage for the lower segment of the labor market and discusses the impact of contributions to social security on the demand for labor.

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    File URL: http://www.ifw-members.ifw-kiel.de/publications/the-failure-of-the-german-labor-market/kap1169.pdf
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    Bibliographic Info

    Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1169.

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    Length: 53 pages
    Date of creation: Jun 2003
    Date of revision:
    Handle: RePEc:kie:kieliw:1169

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    Related research

    Keywords: Unemployment; institutional arrangement; reservation wage; social security;

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    1. Ebbinghaus, Bernhard, 2002. "Dinosaurier der Dienstleistungsgesellschaft? Der Mitgliederschwund deutscher Gewerkschaften im historischen und internationalen Vergleich," MPIfG Working Paper 02/3, Max Planck Institute for the Study of Societies.
    2. Hans-Werner Sinn & Christian Holzner & Wolfgang Meister & Wolfgang Ochel & Martin Werding, 2002. "Aktivierende Sozialhilfe - Ein Weg zu mehr Beschäftigung und Wachstum," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 55(09), pages 03-52, 05.
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