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The German Labor Market Miracle Revisited: Risk Elimination in Working Time Accounts

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  • Vivian Carstensen

    (Bielefeld University ASC and University of Hannover, Germany)

Abstract

This paper contributes to analyses of sustainable enterprise with focus on quality of present and future employment, maintenance of human capital and constituting characteristics of institutional arrangements between the social partners. We add by proving that a specific option from the toolkit of flexible work schedules reduces unemployment risk over the business cycle, while providing mutual insurance of employers and employees. In labor market practice this option is known as working time accounts. Working time accounts are exceptionally widespread and well-institutionalized in Germany. We also introduce a risk elimination model of working time accounts and thus contribute to closing the jobs miracle research gap that has become evident since the global financial and economic crisis.

Suggested Citation

  • Vivian Carstensen, 2013. "The German Labor Market Miracle Revisited: Risk Elimination in Working Time Accounts," Eurasian Journal of Social Sciences, Eurasian Publications, vol. 1(1), pages 19-38.
    • Handle: RePEc:ejn:ejssjr:v:1:y:2013:i:1:p:19-38
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    References listed on IDEAS

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    Cited by:

    1. Bellmann, Lutz & Hübler, Olaf, 2015. "Are Working Time Accounts Beneficial for German Establishments?," IZA Discussion Papers 9583, Institute of Labor Economics (IZA).

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