IDEAS home Printed from
   My bibliography  Save this paper

Der Euro als Jobmaschine? Zu den Auswirkungen des Euro auf den deutschen Arbeitsmarkt


  • Franz, Wolfgang

    () (ZEW Mannheim)


This paper analyzes the potential advantages and disadvantages of the introduction of the common European currency for the German labor market. First, experiences of the German currency union of 1990 cannot be transferred to the European case. Second, the loss of the instrument of nominal exchange rates per se should not be exaggerated, since, empirically, volatility among the European currencies is relatively low already and is mostly due to speculative capital flows which destroyed jobs in the past. Decreased transaction costs might have a positive effect on employment. On the other hand, the Euro will not create additional pressure on national market structres to adapt to increased competition. This is done by the persistent relevance of real exchange rates and the European Single Market. While higher mobility of labor might not be a desirable substitute for the buffer function of national monetary policy, there will be an increased need for wage flexibility in order to avoid negative impacts of asymmetric shocks. Increased intra-European transfers are no alternative due to their negative incentives for economic reform. Excessive wages, however, were not alimentated by the German Bundesbank either, and wage setting cannot be solely held responsible for high unemployment in situations of recession and mismatch in the labor market. Assessing these aspects of EMU, one should not expect massive positive employment effects of the Euro.

Suggested Citation

  • Franz, Wolfgang, 1998. "Der Euro als Jobmaschine? Zu den Auswirkungen des Euro auf den deutschen Arbeitsmarkt," IZA Discussion Papers 9, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp9

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Puhani, Patrick A., 1999. "Labour Mobility - An Adjustment Mechanism in Euroland?," IZA Discussion Papers 34, Institute for the Study of Labor (IZA).
    2. Patrick A. Puhani, 2001. "Labour Mobility: An Adjustment Mechanism in Euroland? Empirical Evidence for Western Germany, France and Italy," German Economic Review, Verein für Socialpolitik, vol. 2(2), pages 127-140, May.

    More about this item


    euroean monetary integration; labor market adjustment; unemployment;

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General


    Access and download statistics


    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:dp9. 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). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.