IDEAS home Printed from
   My bibliography  Save this article

The German Labour Markets - The case for more flexibility


  • Peter Rühmann

    (University of Göttingen)


A framework of different labour market segments is introduced to describe the stylised facts of the German labour market. Two processes, the outsourcing of production to Middle and Eastern Europe and the transfer of jobs to the shadow economy, are distinguished, which are eroding the formerly favourable labour market situation in Germany. It is argued that the shadow economy cannot operate as a substitute for the regular economy if the latter is put under strain and more flexibility is required. The framework used here seems to be in broad agreement with the stylised facts, showing that the process of adjustment has resulted mainly in changes to employment and the (official) GDP rather than to wages. Finally, the paper deals with the consequences that may arise if the recent emergence of selective wage concessions turns into a reduction in overall wage levels.

Suggested Citation

  • Peter Rühmann, 2004. "The German Labour Markets - The case for more flexibility," Notas Económicas, Faculty of Economics, University of Coimbra, issue 20, pages 135-144, December.
  • Handle: RePEc:gmf:journl:y:2004:i:20:p:135-144

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gmf:journl:y:2004:i:20:p:135-144. 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: (Ana Seiça). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.