East German unemployment: The myth of the irrelevant labor market

Journal article


Publication Details

Author(s): Merkl C, Snower D
Journal: Journal of Post Keynesian Economics
Publisher: ME Sharpe
Publication year: 2008
Volume: 31
Journal issue: 1
Pages range: 151-165
ISSN: 0160-3477
Language: English


Abstract


This paper indicates that East Germany's unemployment problem originates primarily in the labor market, caused by the fast wage adjustment after German reunification. We model the resulting labor market "traps" in a search and matching framework, show that they are difficult to overcome, and provide empirical evidence. We argue that under these circumstances, demandside policies are effective mainly when they increase the economy's overall productivity and thereby help overcome the labor market traps.



FAU Authors / FAU Editors

Merkl, Christian Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Makroökonomik


How to cite

APA:
Merkl, C., & Snower, D. (2008). East German unemployment: The myth of the irrelevant labor market. Journal of Post Keynesian Economics, 31(1), 151-165. https://dx.doi.org/10.2753/PKE0160-3477310108

MLA:
Merkl, Christian, and Dennis Snower. "East German unemployment: The myth of the irrelevant labor market." Journal of Post Keynesian Economics 31.1 (2008): 151-165.

BibTeX: 

Last updated on 2018-08-07 at 08:23