IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp10341.html
   My bibliography  Save this paper

Etiopathology of Europe's Sick Man: Worker Flows in Germany, 1959-2016

Author

Listed:
  • Hartung, Benjamin

    () (University of Bonn)

  • Jung, Philip

    () (TU Dortmund)

  • Kuhn, Moritz

    () (University of Bonn)

Abstract

We provide new estimates on worker flow rates in and out of unemployment for Germany covering the last six decades. In the 1980s, Germany emerged as the sick man of Europe with a labor market characterized by persistently high unemployment rates. We attribute a substantial fraction of the rise in unemployment to a dramatic increase in inflow rates compared to the 1960s. Germany's recovery started in the mid-2000s after the Hartz reforms, when inflow rates persistently decreased. Comparing the German and U.S. labor market during recessions uncovers a striking similarity between the recent financial crisis in the U.S. and the German recession in the 1980s. We relate these findings to existing theories on labor market differences between the U.S. and Germany.

Suggested Citation

  • Hartung, Benjamin & Jung, Philip & Kuhn, Moritz, 2016. "Etiopathology of Europe's Sick Man: Worker Flows in Germany, 1959-2016," IZA Discussion Papers 10341, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp10341
    as

    Download full text from publisher

    File URL: http://ftp.iza.org/dp10341.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Moritz Kuhn & Philip Jung, 2015. "What hides behind the German labor market miracle? A macroeconomic analysis," 2015 Meeting Papers 614, Society for Economic Dynamics.
    2. Lars Ljungqvist & Thomas J. Sargent, 1998. "The European Unemployment Dilemma," Journal of Political Economy, University of Chicago Press, vol. 106(3), pages 514-550, June.
    3. Andreas Hornstein & Per Krusell & Giovanni L. Violante, 2007. "Technology—Policy Interaction in Frictional Labour-Markets," Review of Economic Studies, Oxford University Press, vol. 74(4), pages 1089-1124.
    4. Samuel Bentolila & Giuseppe Bertola, 1990. "Firing Costs and Labour Demand: How Bad is Eurosclerosis?," Review of Economic Studies, Oxford University Press, vol. 57(3), pages 381-402.
    5. Johannes F. Schmieder† & Till von Wachter & Stefan Bender, 2011. "The Effects Of Extended Unemployment Insurance Over The Business Cycle: Evidence From Regression Discontinuity Estimates Over Twenty Years," Boston University - Department of Economics - Working Papers Series WP2011-063, Boston University - Department of Economics.
    6. Philip Jung & Moritz Kuhn, 2014. "Labour Market Institutions and Worker Flows: Comparing Germany and the US," Economic Journal, Royal Economic Society, vol. 124(581), pages 1317-1342, December.
    7. Robert Shimer, 2012. "Reassessing the Ins and Outs of Unemployment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 15(2), pages 127-148, April.
    8. Johannes F. Schmieder & Till von Wachter & Stefan Bender, 2012. "The Effects of Extended Unemployment Insurance Over the Business Cycle: Evidence from Regression Discontinuity Estimates Over 20 Years," The Quarterly Journal of Economics, Oxford University Press, vol. 127(2), pages 701-752.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    labor market dynamics; worker flows; Germany;

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    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:iza:izadps:dp10341. 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: (Holger Hinte). General contact details of provider: http://www.iza.org .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.