Kiel Working Papers, Kiel Institute for World Economics
No 1169:
The Failure of the German Labor Market
Horst Siebert
Abstract: The paper analyzes why Germany experiences the high and
sticky unemployment. It looks at wage policy and proposes a new approach to
measure productivity growth when unemployment increases. It studies the
position of trade unions and the institutional set-up of the labor market.
It looks at the role of the reservation wage for the lower segment of the
labor market and discusses the impact of contributions to social security
on the demand for labor.
Keywords: Unemployment, institutional arrangement, reservation wage, social security; (follow links to similar papers)
JEL-Codes: J0,; I3; (follow links to similar papers)
53 pages, June 2003
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