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Which factors are behind Germany's labour market upswing?

Christian Hutter, Sabine Klinger, Carsten Trenkler and Enzo Weber
Additional contact information
Christian Hutter: Institute for Employment Research (IAB), Nuremberg, Germany
Sabine Klinger: Institute for Employment Research (IAB), Nuremberg, Germany

No 201920, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "The strong and sustained labour market upswing in Germany is widely recognized. In a developing literature, various relevant studies highlight different specific reasons. The underlying study, instead, simultaneously considers a broad set of factors in a unified methodological framework and systematically weighs the candidate reasons for the labour market upswing against each other on an empirical basis. The candidates are: shocks on (de)regulation of employment or job creation intensity, the efficiency of the matching process, wage determination, the separation propensity, the size of the labour force, technology, business cycle and working time. We develop a structural macroeconometric framework that leaves as manyof the systematic interlinkages as possible for empirical determination while operating with a minimal set of restrictions in order to identify economically meaningful shocks. For this purpose, we combine short- and long-run restrictions based on search-and-matching theory and established assumptions on labour force development and technological change. Matching efficiency, job creation intensity, labour force, and separation propensity yield the largest contributions in explaining the German labour market upswing." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Beveridgekurve; Deregulierung; Determinanten; Effizienz; Entlassungen; Arbeitslosigkeitsentwicklung; Integrierte Erwerbsbiografien; Konjunkturzyklus; Lohnfindung; matching; Arbeitskräfteangebot; technischer Wandel; Arbeitsmarktentwicklung; zusätzliche Arbeitsplätze; Arbeitszeit; 1992-2017 (search for similar items in EconPapers)
JEL-codes: C32 E24 J21 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2019
New Economics Papers: this item is included in nep-eur, nep-lma and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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