Arbeitspapier

Extensive vs. intensive margin in Germany and the United States: Any differences?

This paper analyzes the role of the extensive vis-à-vis the intensive margin of labor adjustment in Germany and in the United States. The contribution is twofold. First, we provide an update of older US studies and confirm the view that the extensive margin (i.e., the adjustment in the number of workers) explains the largest part in the overall variability in aggregate hours. Second, although the German labor market structure is very different from its US counterpart, the quantitative importance of the extensive margin is of similar magnitude.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 5117

Classification
Wirtschaft
Econometric and Statistical Methods and Methodology: General
Business Fluctuations; Cycles
Labor Force and Employment, Size, and Structure
Subject
business cycle
extensive and intensive margin
variance decomposition

Event
Geistige Schöpfung
(who)
Merkl, Christian
Wesselbaum, Dennis
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2010

Handle
URN
urn:nbn:de:101:1-201010132728
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Merkl, Christian
  • Wesselbaum, Dennis
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2010

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