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Patterns of unemployment dynamics in Germany

  • Nordmeier, Daniela

    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

  • Weber, Enzo


    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

"This paper studies the patterns of unemployment dynamics in Germany. To provide a deeper insight into the margins of unemployment adjustment, we employ a structural VAR model and identify the effects of a technology shock as well as two policy shocks. We find that the worker reallocation process varies substantially with the identified shocks. The job finding rate plays a larger role following a technology shock and a monetary policy shock, while the separation rate appears as the dominant margin after a fiscal policy shock. Technology shocks are relatively important for variations in the transition rates, though they do not seem to trigger the high volatilities of German labor market variables. Considering policy shocks, our results point towards fiscal interventions as a promising instrument, but with several limitations." (Author's abstract, IAB-Doku) ((en))

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Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 201302.

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Length: 34 pages
Date of creation: 26 Mar 2013
Date of revision:
Handle: RePEc:iab:iabdpa:201302
Contact details of provider: Postal: Regensburger Str. 104, D-90327 Nürnberg
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