EconPapers    
Economics at your fingertips  
 

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)

Abstract: 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
Date: 2018-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Published in: Economic Modelling, 2019, 78, 192-208

Downloads: (external link)
http://ftp.iza.org/dp11858.pdf (application/pdf)

Related works:
Journal Article: The German labor market during the Great Recession: Shocks and institutions (2019) Downloads
Working Paper: The German labor market during the Great Recession: Shocks and institutions (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp11858

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

 
Page updated 2019-06-11
Handle: RePEc:iza:izadps:dp11858