Arbeitspapier
East German unemployment: the myth of the irrelevant labor market
This paper indicates that East Germany's unemployment originates primarily in the labor market, caused by the fast wage adjustment after German reunification. We model the resulting labor market traps in a search and matching framework, show that they are difficult to overcome, and provide empirical evidence. We argue that under these circumstances, demand-side policies are effective mainly when they increase the economy's overall productivity and thereby help overcome the labor market traps.
- Sprache
-
Englisch
- Erschienen in
-
Series: Kiel Working Paper ; No. 1435
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Wages, Compensation, and Labor Costs: General
Unemployment: Models, Duration, Incidence, and Job Search
labor market trap
East Germany
Arbeitslosigkeit
Lohnpolitik
Anspruchslohn
Nationale Einheit
Rationalisierung
Arbeitsproduktivität
Arbeitsmarktflexibilisierung
Neue Bundesländer
Snower, Dennis J.
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:22 MESZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Merkl, Christian
- Snower, Dennis J.
- Kiel Institute for the World Economy (IfW)
Entstanden
- 2008