The Use of Flexible Measures to Cope with Economic Crises in Germany and Brazil

Werner Eichhorst, Paul Marx () and José Pastore ()
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Paul Marx: University of Bonn

No 6137, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This study gives a comparative overview of labor market dynamics and institutional arrangements in Germany and Brazil with particular emphasis on industrial relations, wage setting, unemployment benefits, employment protection and vocational training. The paper shows that institutions determine the mode of adjustment to changing economic conditions and the role of standard vs. non-standard contracts. Whereas internal flexibility via shorter working time was a dominant mode of adjustment during the 2008-09 crisis in the German manufacturing sector, in Brazil such plant-level flexibility to avoid dismissals was less prominent.

Keywords: working time; labor market flexibility; Germany; Brazil; dismissal protection (search for similar items in EconPapers)
JEL-codes: J21 J42 J52 (search for similar items in EconPapers)
Pages: 66 pages
Date: 2011-11
New Economics Papers: this item is included in nep-lab and nep-lma
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Citations: View citations in EconPapers (2)

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