The German Labor Market during the Great Recession: Shocks and Institutions
Britta Gehrke (),
Wolfgang Lechthaler and
Christian Merkl ()
No 11858, IZA Discussion Papers from Institute of Labor Economics (IZA)
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.
Keywords: Great Recession; search and matching; DSGE; short-time work; fiscal policy; business cycles; Germany (search for similar items in EconPapers)
JEL-codes: E24 E32 E62 J08 J63 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-eec, nep-lab and nep-mac
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Published in: Economic Modelling, 2019, 78, 192-208
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Journal Article: The German labor market during the Great Recession: Shocks and institutions (2019)
Working Paper: The German labor market during the Great Recession: Shocks and institutions (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp11858
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