The German labor market during the Great Recession: Shocks and institutions

Artikel

This paper analyzes Germany’s unusual labor market experience during the Great Recession. We estimate a general equilibrium model with a detailed labor market block for post-unification Germany. This allows us to disentangle the role of institutions (short-time work, government spending rules) and shocks (aggregate, labor market, and policy shocks) and to perform counterfactual exercises. We identify positive labor market performance shocks (likely caused by labor market reforms) as the key driver for the “German labor market miracle” during the Great Recession.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Economic Modelling ; ISSN: 0264-9993 ; Volume: 78 ; Year: 2019 ; Pages: 192-208 ; Amsterdam: Elsevier

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Business Fluctuations; Cycles ; Fiscal Policy ; Labor Economics Policies ; Labor Turnover; Vacancies; Layoffs
• Subject: Great Recession ; search and matching ; DSGE ; short-time work ; fiscal policy ; business cycles ; Germany

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gehrke, Britta ; Lechthaler, Wolfgang ; Merkl, Christian
• Event: Veröffentlichung
• (who): Elsevier ; ZBW - Leibniz Information Centre for Economics
• (where): Amsterdam
• (when): 2019

Further information

• DOI: doi:10.1016/j.econmod.2018.09.022
• Handle: http://hdl.handle.net/10419/266168
• Last update: 10.03.2025, 11:46 AM CET