Unemployment in Germany and the Eurosclerosis debate
- Many European countries have experienced a significant increase of unemployment in recent years. This paper reviews several theoretical models that try to explain this phenomenon. Predominantly, these models claim a link between the poor performance of European labor markets and the high level of market regulation. Commonly referred to as the Eurosclerosis debate, prominent approaches consider insider-outsider relationships, search-models, and the influence of hiring and firing costs on equilibrium employment. The paper presents empirical evidence of each model and studies the relevance of the identified rigidities as a determinant of high unemployment in Europe. Furthermore, a case study analyzes the unemployment problem in Germany and critically discusses new reform efforts. In particular this section analyzes whether the recently enacted Hartz reforms can induce higher employment.
Author details: | Denis Drechsler |
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URN: | urn:nbn:de:kobv:517-opus-9036 |
Subtitle (English): | Can the Hartz reforms induce higher employment? |
Publication series (Volume number): | Finanzwissenschaftliche Diskussionsbeiträge (48) |
Publication type: | Working Paper |
Language: | English |
Publication year: | 2005 |
Publishing institution: | Universität Potsdam |
Release date: | 2006/09/20 |
Source: | Finanzwissenschaftliche Diskussionsbeiträge / Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät, Lehrstuhl für Finanzwissenschaft ; 48 |
RVK - Regensburg classification: | QL 200 |
RVK - Regensburg classification: | QL 000 |
Organizational units: | Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften |
Extern / Extern | |
DDC classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |