Download or read book Unemployment and Labor Market Rigidities written by Denis Drechsler and published by diplom.de. This book was released on 2004-12-02 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inhaltsangabe:Abstract: Many European countries have experienced a significant increase of unemployment in recent years. Especially striking is the fact that unemployment rates in most European countries are significantly higher as compared to the United States. This paper reviews several theoretical models, which have been proposed to explain this phenomenon. Predominantly, these models claim a link between the poor performance of European labor markets and the high level of market regulation. Commonly referred to as the Eurosclerosis debate, prominent approaches consider insider-outsider relationships, search-models, and the influence of hiring and firing costs on equilibrium employment. The paper presents empirical evidence of each model and studies the relevance of the identified rigidities as a determining factor for high unemployment in Europe. Furthermore, a case study analyzes the unemployment problem in Germany and critically discusses recent reform efforts. Einleitung: In vielen europäischen Ländern ist die Arbeitslosigkeit in den vergangenen Jahren stark angestiegen. Besonders auffallend ist hierbei, das die Arbeitslosenrate in den meisten europäischen Staaten über den Werten in den USA liegt. Die vorliegende Arbeit untersucht eine Reihe theoretischer Modelle, die in der Literatur zur Erklärung dieses Phänomens diskutiert werden. Hauptsächlich sehen diese Modelle eine Verbindung zwischen dem hohen Grad an Marktregulierung und der schlechten Performance europäischer Arbeitsmärkte. Im Rahmen der so genannten Eurosclerosis-Debatte beleuchten mehrere Ansätze eine Insider-Outsider-Problematik, Such-Modelle, sowie den Einfluss von Einstellungs- und Kündigungsschutzregelungen (hiring- and firing-costs) auf die gleichgewichtige Beschäftigungsquote. Die Arbeit diskutiert die empirische Relevanz jedes Modells und analysiert insbesondere ihre Bedeutung als Erklärungsansatz für die hohe Arbeitslosigkeit in Europa. Darüber hinaus untersucht eine Fallstudie das Arbeitslosigkeitsproblem in Deutschland und diskutiert jüngste Reformmaßnahmen des so genannten Hartz-Programms. Insbesondere steht dabei die Frage im Vordergrund, ob einzelne Arbeitsmarktinstrumente wie Ich-AGs, Persönliche Service Agenturen (PSAs) sowie Mini- und Midijobs Abhilfe schaffen zu den in der Literatur identifizierten Beschäftigungshemmnissen. Inhaltsverzeichnis:Table of Contents: 1.Introduction1 2.Labor Market Rigidities and the European Unemployment [...]
Download or read book Unemployment and Labor Market Rigidities Theroy Empricial Evidence and Recent Labor Market Reforms in Germany written by Denis Drechsler and published by . This book was released on 2004 with total page 75 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Unemployment and Labor Market Rigidities written by Denis Drechsler and published by VDM Publishing. This book was released on 2007-09 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many European countries have experienced a significant increase of unemployment in recent years. This publication reviews several theoretical models that try to explain this phenomenon. Predominantly, these models claim a link between the poor performance of European labor markets and the high level of market regulation. Commonly referred to as the Eurosclerosis debate, prominent approaches consider insider-outsider relationships, search-models, and the influence of hiring and firing costs on equilibrium employment. The publication presents empirical evidence of each model and studies the relevance of the identified rigidities as a determinant of high unemployment in Europe. Furthermore, a case study analyzes high unemployment rates in Germany and critically discusses recent reform efforts. This study provides a sober and unprejudiced analysis of the European labor market and its weaknesses. According to the author's convincing argument, substantial efforts are still needed in the areas of institutional reform and incentive-based labor market policy. The book is a must read for political and economic decision-makers. Prof. Dr. Klaus F. Zimmermann; Director; Institute for the Study of Labor (IZA), Germany. A superb piece, well documented, comprehensive and with many useful insights and policy recommendations, on one of the most important topics in Europe. A must for all those interested in unemployment and labor market issues. Javier Santiso; Acting Director and Chief Economist; OECD Development Centre, France.
Download or read book The German Labor Market Reforms and Post Unemployment Earnings written by Niklas Engbom and published by International Monetary Fund. This book was released on 2015-07-17 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 2003–05, Germany undertook extensive labor market reforms which were followed by a large and persistent decline in unemployment. Key elements of the reforms were a drastic cut in benefits for the long-term unemployed and tighter job search and acceptance obligations. Using a large confidential data set from the German social security administration, we find that the reforms were associated with a fall in the earnings of workers returning to work from short-term unemployment relative to workers in long-term employment of about 10 percent. We interpret this as evidence that the reforms strengthened incentives to return to work but, in doing so, they adversely affected post re-entry earnings.
Download or read book Macroeconomic Evaluation of Labor Market Reform in Germany written by Mr.Tom Krebs and published by International Monetary Fund. This book was released on 2013-02-13 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 2005 the German government implemented the so-called Hartz IV reform, which amounted to a complete overhaul of the German unemployment insurance system and resulted in a significant reduction in unemployment benefits for the long-term unemployed. In this paper, we use an incomplete-market model with search unemployment to evaluate the macro-economic and welfare effects of the Hartz IV reform. We calibrate the model economy to German data before the reform and then use the calibrated model economy to simulate the effects of Hartz IV. In our baseline calibration, we find that the reform has reduced the long-run (noncyclical) unemployment rate in Germany by 1.4 percentage points. We also find that the welfare of employed households increases, but the welfare of unemployed households decreases even with moderate degree of risk aversion.
Download or read book Persistence and the German Unemployment Problem written by Christoph M. Schmidt and published by . This book was released on 1999 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book What Hides Behind the German Labor Market Miracle written by Benjamin Hartung and published by . This book was released on 2018 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: A key question in labor market research is how the unemployment insurance system affects unemployment rates and labor market dynamics. We revisit this old question studying the German Hartz reforms. On average, lower separation rates explain 76% of declining unemployment after the reform, a fact unexplained by existing research focusing on job finding rates. The reduction in separation rates is heterogeneous, with long-term employed, high-wage workers being most affected. We causally link our empirical findings to the reduction in long-term unemployment benefits using a heterogeneous-agent labor market search model. Absent the reform, unemployment rates would be 50% higher today.
Download or read book Persistence and the German Unemployment Problem written by Christoph M. Schmidt and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a retrospective monthly calendarium of individuals' major economic activities, this paper characterizes the monthly employment and unemployment rates and the monthly transition intensities between the states of employment, unemployment, and out-of-the-labor-force for the German labor market between January/February 1983 and November/December 1994. The analysis provides a detailed portrait for demographic cells defined by gender, three age groups, and three education groups. Overall, the German labor market displays a high level of persistence, but important differences exist across demographic groups. By contrast, almost no changes can be observed across time, apart from a drastic decrease of male job finding rates during the early 1990s. When compared to France, the German labor market does not appear to be excessively rigid, although the differences with the fluid U.S. labor market are very substantial.
Download or read book The Labor Market and Economic Adjustment written by Pierre-Richard Agénor and published by International Monetary Fund. This book was released on 1995-11-01 with total page 98 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the role of the labor market in the transmission process of adjustment policies in developing countries. It begins by reviewing the recent evidence regarding the functioning of these markets. It then studies the implications of wage inertia, nominal contracts, labor market segmentation, and impediments to labor mobility for stabilization policies. The effect of labor market reforms on economic flexibility and the channels through which labor market imperfections alter the effects of structural adjustment measures are discussed next. The last part of the paper identifies a variety of issues that may require further investigation, such as the link between changes in relative wages and the distributional effects of adjustment policies.
Download or read book Empirical Analyses of the German Labor Market written by Christoph M. Schmidt and published by . This book was released on 1991 with total page 306 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Labour Market Reform in Germany written by Heinz Jansen and published by . This book was released on 2004 with total page 6 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent employment statistics indicate a remarkable change from historical patterns,which have shown a strong increase in structural unemployment in each of the last three decades. Although the German economy did not grow in 2003, employment has contracted by only 1%, while unemployment has even started to fall mildly since Spring 2003. This note surveys whether these changes can be attributed to actual changes related in particular to the Hartzʺ labour market reforms, which brought a wide array of individual measures to ease labour market rigidities. It is shown that, while changes in the way unemployment is registered explains much of the statistical change, there are indeed also first signs that the labour market is becoming more flexible. The full impact of labour market reforms will,however, only become visible over the next few years. The extent to which these measures will prove effective also depends crucially on their being accompanied by structural reforms in other parts of the economy.
Download or read book Law and Employment written by James J. Heckman and published by University of Chicago Press. This book was released on 2007-11-01 with total page 585 pages. Available in PDF, EPUB and Kindle. Book excerpt: Law and Employment analyzes the effects of regulation and deregulation on Latin American labor markets and presents empirically grounded studies of the costs of regulation. Numerous labor regulations that were introduced or reformed in Latin America in the past thirty years have had important economic consequences. Nobel Prize-winning economist James J. Heckman and Carmen Pagés document the behavior of firms attempting to stay in business and be competitive while facing the high costs of complying with these labor laws. They challenge the prevailing view that labor market regulations affect only the distribution of labor incomes and have little or no impact on efficiency or the performance of labor markets. Using new micro-evidence, this volume shows that labor regulations reduce labor market turnover rates and flexibility, promote inequality, and discriminate against marginal workers. Along with in-depth studies of Colombia, Peru, Brazil, Argentina, Chile, Uruguay, Jamaica, and Trinidad, Law and Employment provides comparative analysis of Latin American economies against a range of European countries and the United States. The book breaks new ground by quantifying not only the cost of regulation in Latin America, the Caribbean, and in the OECD, but also the broader impact of this regulation.
Download or read book Designing Labor Market Institutions in Emerging and Developing Economies written by Mr.Romain A Duval and published by International Monetary Fund. This book was released on 2019-05-21 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper discusses theoretical aspects and evidences related to designing labor market institutions in emerging market and developing economies. This note reviews the state of theory and evidence on the design of labor market institutions in a developing economy context and then reviews its consistency with actual labor market advice in a selected set of emerging and developing economies. The focus is mainly on three broad sets of institutions that matter for both workers’ protection and labor market efficiency: employment protection, unemployment insurance and social assistance, minimum wages and collective bargaining. Text mining techniques are used to identify IMF recommendations in these areas in Article IV Reports for 30 emerging and frontier economies over 2005–2016. This note has provided a critical review of the literature on the design of labor market institutions in emerging and developing market economies, and benchmarked the advice featured in IMF recommendations for 30 emerging market and frontier economies against the tentative conclusions from the literature.
Download or read book Transitions in the German Labor Market written by Michael U. Krause and published by . This book was released on 2016 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the so-called Hartz IV reforms around 2005 and during the global crisis of 2008/2009, the German labor market featured mainly declining unemployment rates. We develop a search and matching model with heterogeneous skills to explore the role of structural and cyclical policies for this performance. Calibrating unemployment benefits to approximate legislation before and after the reforms, we find a large reduction in unemployment and its duration, with the transition concluding after about three years. During the crisis, the extended use of short-time labor subsidies that prevent jobs from being destroyed is likely to have prevented strong increases in unemployment.
Download or read book International Trade and Labor Markets written by Carl Davidson and published by W.E. Upjohn Institute. This book was released on 2004 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Optimal Unemployment Insurance written by Andreas Pollak and published by Mohr Siebeck. This book was released on 2007 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt: Designing a good unemployment insurance scheme is a delicate matter. In a system with no or little insurance, households may be subject to a high income risk, whereas excessively generous unemployment insurance systems are known to lead to high unemployment rates and are costly both from a fiscal perspective and for society as a whole. Andreas Pollak investigates what an optimal unemployment insurance system would look like, i.e. a system that constitutes the best possible compromise between income security and incentives to work. Using theoretical economic models and complex numerical simulations, he studies the effects of benefit levels and payment durations on unemployment and welfare. As the models allow for considerable heterogeneity of households, including a history-dependent labor productivity, it is possible to analyze how certain policies affect individuals in a specific age, wealth or skill group. The most important aspect of an unemployment insurance system turns out to be the benefits paid to the long-term unemployed. If this parameter is chosen too high, a large number of households may get caught in a long spell of unemployment with little chance of finding work again. Based on the predictions in these models, the so-called "Hartz IV" labor market reform recently adopted in Germany should have highly favorable effects on the unemployment rates and welfare in the long run.
Download or read book Explaining Unemployment in Spain written by Mr.Jeffrey R. Franks and published by International Monetary Fund. This book was released on 1994-09-01 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Spain has the most serious and persistent unemployment problem in Europe, with an unemployment rate that reached 24.6 percent in early 1994. This paper explores the characteristics of this unemployment problem, its causes, and provides a brief discussion of recent labor market reform measures and their likely Impact. A demographic shift in recent years has produced a large rise in female labor force participation and a decrease in agricultural jobs to which the economy has been unable to adjust. The effects of generous unemployment benefits and the large underground economy may explain 6–12 percentage points of the resulting unemployment, but the remainder must be explained by failures and rigidities in the labor market. The paper presents econometric evidence that unemployment displays hysteresis, and that wages are not responsive to changes in the unemployment rate. This evidence supports the claim that insider-outsider factors and rigidities in the legal structure of the labor market are responsible for much of the high unemployment rate. Recent reforms have improved the functioning of the labor market, but they are unlikely to be sufficient to reduce unemployment to single digit rates without further action.
