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The Use of Flexible Measures to Cope with Economic Crises in Germany and Brazil

Author

Listed:
  • Eichhorst, Werner

    () (IZA)

  • Marx, Paul

    () (University of Duisburg-Essen)

  • Pastore, José

    () (University of Sao Paulo)

Abstract

This study gives a comparative overview of labor market dynamics and institutional arrangements in Germany and Brazil with particular emphasis on industrial relations, wage setting, unemployment benefits, employment protection and vocational training. The paper shows that institutions determine the mode of adjustment to changing economic conditions and the role of standard vs. non-standard contracts. Whereas internal flexibility via shorter working time was a dominant mode of adjustment during the 2008-09 crisis in the German manufacturing sector, in Brazil such plant-level flexibility to avoid dismissals was less prominent.

Suggested Citation

  • Eichhorst, Werner & Marx, Paul & Pastore, José, 2011. "The Use of Flexible Measures to Cope with Economic Crises in Germany and Brazil," IZA Discussion Papers 6137, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp6137
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    References listed on IDEAS

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    1. Christian Dustmann & Johannes Ludsteck & Uta Schönberg, 2009. "Revisiting the German Wage Structure," The Quarterly Journal of Economics, Oxford University Press, vol. 124(2), pages 843-881.
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    Cited by:

    1. repec:ilo:ilowps:484127 is not listed on IDEAS
    2. Kümmerling, Angelika. & Lehndorff, Steffen., 2013. "The use of working time-related crisis response measures during the Great Recession," ILO Working Papers 994841273402676, International Labour Organization.

    More about this item

    Keywords

    working time; labor market flexibility; Germany; Brazil; dismissal protection;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

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