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Are There Austerity?Related Policy Changes in Germany?

Author

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  • Eichhorst, Werner

    (IZA)

  • Hassel, Anke

    (Hans Böckler Stiftung)

Abstract

This paper assesses the existence and the extent of austerity-oriented policies in Germany in the aftermath of the 2008-9 recession. In contrast to the intensive phase of labour market and welfare state reforms in the early 2000s aimed at 'welfare readjustment', we do not see austerity policies in Germany, rather a continuation of the path that was adopted earlier. This can be explained by the economic conditions which were, and still are, much more favourable than in many other EU Member States. Most recently, we can identify a partial reregulation of the labour market, most notably the introduction of a national minimum wage, a potential increase in the regulation of non-standard contracts and a reintroduction of early retirement for labour market insiders. These policies can be classified as 'welfare protectionism'.

Suggested Citation

  • Eichhorst, Werner & Hassel, Anke, 2015. "Are There Austerity?Related Policy Changes in Germany?," IZA Discussion Papers 9325, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9325
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    References listed on IDEAS

    as
    1. W. Eichhorst & M. Grienberger-Zingerle & R. Konle-Seidl, 2008. "Activation Policies in Germany: From Status Protection to Basic Income Support," Springer Books, in: Werner Eichhorst & Otto Kaufmann & Regina Konle-Seidl (ed.), Bringing the Jobless into Work?, pages 17-67, Springer.
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    More about this item

    Keywords

    welfare state retrenchment; austerity; Germany; labour market reforms;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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