Reforming German Labor Market Institutions: A Dual Path to Flexibility
Germany has always been one of the prime examples of institutional complementarities between social insurance, a rather passive welfare state, strong employment protection and collective bargaining that stabilize diversified quality production. This institutional arrangement was criticized for being the main cause of inferior labor market performance and increasing fiscal pressure on the welfare state while at the same time inhibiting institutional change. However, over the last 15 years, a sequence of institutional reforms has fundamentally modified the functioning of the German labor market and increased both flexibility and job creation capacities through two intimately linked processes that redefined the line between inactivity, the flexible and the standard segment of the labor market. On the one hand, policy changes facilitated the expansion of flexible or 'atypical' jobs, whereas increasing flexibility of the standard employment relationship resulted from wage moderation and working time flexibility. While at the outset of this reform sequence German had a small, but relatively egalitarian labor market, the number of jobs, but also their diversity has increased.
|Date of creation:||Mar 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eichhorst, Werner & Konle-Seidl, Regina, 2005.
"The interaction of labor market regulation and labor market policies in welfare state reform,"
IAB Discussion Paper
200519, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Eichhorst, Werner & Konle-Seidl, Regina, 2005. "The Interaction of Labor Market Regulation and Labor Market Policies in Welfare State Reform," IZA Discussion Papers 1718, Institute for the Study of Labor (IZA).
- Tito Boeri & Axel Börsch-Supan & Guido Tabellini, 2001. "Would you like to shrink the welfare state? A survey of European citizens," Economic Policy, CEPR;CES;MSH, vol. 16(32), pages 7-50, 04.
- John T. Addison & Claus Schnabel & Joachim Wagner, 2006.
"The (Parlous) State of German Unions,"
Working Paper Series in Economics
23, University of Lüneburg, Institute of Economics.
- Ebbinghaus, Bernhard, 2008. "Reforming Early Retirement in Europe, Japan and the USA," OUP Catalogue, Oxford University Press, number 9780199553396, March.
- Hassel, Anke & Rehder, Britta, 2001. "Institutional change in the German wage bargaining system: The role of big companies," MPIfG Working Paper 01/9, Max Planck Institute for the Study of Societies.
- Anke Hassel, 2003. "The Politics of Social Pacts," British Journal of Industrial Relations, London School of Economics, vol. 41(4), pages 707-726, December.
- Michael Kvasnicka, 2008.
"Does Temporary Help Work Provide a Stepping Stone to Regular Employment?,"
NBER Working Papers
13843, National Bureau of Economic Research, Inc.
- Michael Kvasnicka, 2009. "Does Temporary Help Work Provide a Stepping Stone to Regular Employment?," NBER Chapters, in: Studies of Labor Market Intermediation, pages 335-372 National Bureau of Economic Research, Inc.
- Gilles Saint Paul, 1999.
"The political economy of employment protection,"
Economics Working Papers
355, Department of Economics and Business, Universitat Pompeu Fabra.
- Karl Brenke & Werner Eichhorst, 2008. "Leiharbeit breitet sich rasant aus," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 75(19), pages 242-252.
- Caliendo, Marco & Künn, Steffen & Wießner, Frank, 2008. "Die Nachhaltigkeit von geförderten Existenzgründungen aus Arbeitslosigkeit: Eine Bilanz nach fünf Jahren," IZA Discussion Papers 3880, Institute for the Study of Labor (IZA).
- Kohaut, Susanne & Schnabel, Claus, 2006. "Tarifliche Öffnungsklauseln : Verbreitung, Inanspruchnahme und Bedeutung," Discussion Papers 41, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
- Ebbinghaus, Bernhard & Hassel, Anke, 1999. "Striking deals: Concertation in the reform of continental European welfare states," MPIfG Discussion Paper 99/3, Max Planck Institute for the Study of Societies.
- Peter Berg, 2008. "Working Time Flexibility in the German Employment Relations System: Implications for Germany and Lessons for the United States," Industrielle Beziehungen - Zeitschrift fuer Arbeit, Organisation und Management - The German Journal of Industrial Relations, Rainer Hampp Verlag, vol. 15(2), pages 111 - 132.
- Scharpf, Fritz W., 1997. "Employment and the welfare state: A continental dilemma," MPIfG Working Paper 97/7, Max Planck Institute for the Study of Societies.
- Michael Fertig & Jochen Kluve, 2006. "Alternative BeschÃ¤ftigungsformen in Deutschland: Effekte der Neuregelung von Zeitarbeit, Minijobs und Midijobs," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 75(3), pages 97-117.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp4100. 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: (Mark Fallak)
If references are entirely missing, you can add them using this form.