The German labor market during the Great Recession: Shocks and institutions

Gehrke B, Lechthaler W, Merkl C (2019)

Publication Language: English

Publication Type: Journal article

Publication year: 2019

Journal

Economic Modelling Elsevier

Book Volume: 78

Pages Range: 192-208

Journal Issue: May

DOI: 10.1016/j.econmod.2018.09.022

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.

Authors with CRIS profile

Britta Gehrke Juniorprofessur für Makroökonomie und Arbeitsmarktforschung Christian Merkl Lehrstuhl für Volkswirtschaftslehre, insbesondere Makroökonomik

Related research project(s)

Die Wirkungen der Kurzarbeit: Eine Analyse an der Schnittstelle von dynamischer Makro-Arbeitsmarkttheorie und angewandter Ökonometrie June 1, 2015 - June 1, 2018

How to cite

APA:

Gehrke, B., Lechthaler, W., & Merkl, C. (2019). The German labor market during the Great Recession: Shocks and institutions. Economic Modelling, 78(May), 192-208. https://dx.doi.org/10.1016/j.econmod.2018.09.022

MLA:

Gehrke, Britta, Wolfgang Lechthaler, and Christian Merkl. "The German labor market during the Great Recession: Shocks and institutions." Economic Modelling 78.May (2019): 192-208.

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