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The German labor market in the Great Recession: Shocks and institutions

Author

Listed:
  • Gehrke, Britta

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

  • Lechthaler, Wolfgang
  • Merkl, Christian

Abstract

"This paper analyzes Germany's unusual labor market experience during the Great Recession. We estimate a general equilibrium model with a detailed labor market block for postunification Germany. This allows us to disentangle the role of institutions (short-time work, government spending rules) and shocks (aggregate, labor market, and policy shocks) and to perform counterfactual exercises. We identify positive labor market performance shocks (likely caused by labor market reforms) as the key driver for the 'German labor market miracle' during the Great Recession." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Gehrke, Britta & Lechthaler, Wolfgang & Merkl, Christian, 2017. "The German labor market in the Great Recession: Shocks and institutions," IAB Discussion Paper 201714, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:201714
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    File URL: http://doku.iab.de/discussionpapers/2017/dp1417.pdf
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    References listed on IDEAS

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    Cited by:

    1. Dauth, Wolfgang & Findeisen, Sebastian & S�dekum, Jens & Woessner, Nicole, 2017. "German Robots - The Impact of Industrial Robots on Workers," CEPR Discussion Papers 12306, C.E.P.R. Discussion Papers.
    2. Peters, Jan Cornelius, 2016. "Quantifying the effect of labor market size on learning externalities," Economics Working Papers 2016-11, Christian-Albrechts-University of Kiel, Department of Economics.

    More about this item

    Keywords

    Rezession; Arbeitsmarktentwicklung; institutionelle Faktoren; Kurzarbeit; arbeitsmarktpolitische Maßnahme; öffentliche Ausgaben; Hartz-Reform; Arbeitslosigkeitsentwicklung;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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