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

Author

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  • 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:

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    3. Casares, Miguel & Vázquez, Jesús, 2018. "Why are labor markets in Spain and Germany so different?," Economic Modelling, Elsevier, vol. 75(C), pages 320-335.

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    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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