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German Labor Market is Locally Resilient

Author

Listed:
  • Mona Förtsch
  • Xenia Frei
  • Anna Kremer

Abstract

Even in times of a flourishing economy, as in the ten years before the outbreak of the Corona pandemic, there are always localized slumps in the labor market, for example due to the insolvency of a large local company or a plant closure. We use these slumps, measured by the increase in local unemployment, to investigate how quickly regional labor markets in Germany recover. Our results show that the German labor market is resilient in good times. Even large local labor market shocks hardly increase unemployment and are fully levelled out after eight months.

Suggested Citation

  • Mona Förtsch & Xenia Frei & Anna Kremer, 2021. "German Labor Market is Locally Resilient," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 28(02), pages 30-33, April.
    • Handle: RePEc:ces:ifodre:v:28:y:2021:i:02:p:30-33
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    References listed on IDEAS

    as
    1. Simon Freyaldenhoven & Christian Hansen & Jesse M. Shapiro, 2019. "Pre-event Trends in the Panel Event-Study Design," American Economic Review, American Economic Association, vol. 109(9), pages 3307-3338, September.
    2. Mona Förtsch & Xenia Frei & Anna Kremer & Joachim Ragnitz, 2021. "Regional Risk and Resilience Factors – An Analysis for Germany," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 86.
    3. Sandler, Danielle H. & Sandler, Ryan, 2014. "Multiple event studies in public finance and labor economics: A simulation study with applications," Journal of Economic and Social Measurement, IOS Press, issue 1-2, pages 31-57.
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