Advanced Search
MyIDEAS: Login

Unemployment in West Germany: A survey of explanations and policy options

Contents:

Author Info

  • Paqué, Karl-Heinz
Registered author(s):

    Abstract

    By historical standards, the 1980's have been a time of high unemployment in West Germany. Not surprisingly, they have also been a boom period for theories about unemployment and policy proposals against it. This paper is an attempt in stocktaking: We shall try to sort out which of the most prominent of these theories and policy proposals are still relevant today at the end of the decade, with the West German economy having somewhat recovered from its prior growth slack, but unemployment nevertheless remaining a persistent macroeconomic phenomenon. Of course, the survey-like nature of the paper prohibits any extensive discussion of theoretical subtleties and any detailed presentation of econometric evidence. Instead, it must suffice to sketch the main threads of arguments and to identify major characteristic features of the empirical picture. Our survey consists of three parts. In section II of the paper, we shall summarize some important macroeconomic facts about West German unemployment in the eighties. In section III, we shall briefly evaluate some major theories of unemployment with a view to their explanatory power for present-day West Germany. In the final section IV, we shall discuss various policy measures which have been proposed as a cure to the unemployment malaise.

    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://econstor.eu/bitstream/10419/47240/1/25609974X.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 407.

    as in new window
    Length:
    Date of creation: 1990
    Date of revision:
    Handle: RePEc:kie:kieliw:407

    Contact details of provider:
    Postal: Kiellinie 66, D-24105 Kiel
    Phone: +49 431 8814-1
    Fax: +49 431 85853
    Email:
    Web page: http://www.ifw-kiel.de
    More information through EDIRC

    Related research

    Keywords:

    References

    References listed on IDEAS
    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.:
    as in new window
    1. Paqué, Karl-Heinz, 1989. "Is structural unemployment a negligible problem? A critical note on the use of mismatch indices," Kiel Working Papers 357, Kiel Institute for the World Economy.
    2. Lawrence F. Katz, 1986. "Efficiency Wage Theories: A Partial Evaluation," NBER Chapters, in: NBER Macroeconomics Annual 1986, Volume 1, pages 235-290 National Bureau of Economic Research, Inc.
    3. Olivier J. Blanchard & Lawrence H. Summers, 1986. "Hysteresis in Unemployment," NBER Working Papers 2035, National Bureau of Economic Research, Inc.
    4. Alan S. Blinder, 1988. "The Challenge of High Unemployment," NBER Working Papers 2489, National Bureau of Economic Research, Inc.
    5. Summers, Lawrence H, 1988. "Relative Wages, Efficiency Wages, and Keynesian Unemployment," American Economic Review, American Economic Association, vol. 78(2), pages 383-88, May.
    6. Jacques R. Artus, 1984. "The Disequilibrium Real Wage Rate Hypothesis: An Empirical Evaluation (L'hypothèse du déséquilibre du taux de salaire réel: évaluation empirique) (La hipótesis de desequilibrio del s," IMF Staff Papers, Palgrave Macmillan, vol. 31(2), pages 249-302, June.
    7. Lindbeck, Assar & Snower, Dennis J, 1986. "Wage Setting, Unemployment, and Insider-Outsider Relations," American Economic Review, American Economic Association, vol. 76(2), pages 235-39, May.
    8. Rod Cross, 2000. "Hysteresis and Emu," Metroeconomica, Wiley Blackwell, vol. 51(4), pages 367-379, November.
    9. Freeman, Richard B, 1988. "Evaluating the European View that the United States Has No Unemployment Problem," American Economic Review, American Economic Association, vol. 78(2), pages 294-99, May.
    10. Michael C. Burda & Jeffrey D. Sachs, 1987. "Institutional Aspects of High Unemployment in the Federal Republic of Germany," NBER Working Papers 2241, National Bureau of Economic Research, Inc.
    11. Jackman, R & Roper, S, 1987. "Structural Unemployment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(1), pages 9-36, February.
    12. Bluestone, Barry & Harrison, Bennett, 1988. "The Growth of Low-Wage Employment: 1963-86," American Economic Review, American Economic Association, vol. 78(2), pages 124-28, May.
    13. Lundberg, Erik, 1985. "The Rise and Fall of the Swedish Model," Journal of Economic Literature, American Economic Association, vol. 23(1), pages 1-36, March.
    14. Layard, P. R. G. & Nickell, S. J., 1985. "Unemployment, real wages, and aggregate demand in Europe, Japan and the United States," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 23(1), pages 143-202, January.
    15. Glyn, Andrew & Rowthorn, Bob, 1988. "West European Unemployment: Corporatism and Structural Change," American Economic Review, American Economic Association, vol. 78(2), pages 194-99, May.
    16. Blanchard, Olivier Jean & Summers, Lawrence H, 1988. "Beyond the Natural Rate Hypothesis," American Economic Review, American Economic Association, vol. 78(2), pages 182-87, May.
    17. Coen, Robert M & Hickman, Bert G, 1988. "Is European Unemployment Classical or Keynesian?," American Economic Review, American Economic Association, vol. 78(2), pages 188-93, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    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:kie:kieliw:407. 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: (Dieter Stribny).

    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.