Journal Article
The German Labor Market During the Great Recession: Shocks and Institutions
Economic Modelling, Volume 78, 192-208
Autoren
Erscheinungsdatum
JEL Classification
E24
E32
E62
J08
J63
Schlagworte
Konjunktur
Konjunktur Welt
Fiskalpolitik & Haushalt
Wachstum
Arbeitsmarkt
Steuerpolitik
Wohlfahrtsstaat
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.
