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Zimmermann, K. Wey, C. (Eds.) (2010). The Economy, Crises, and the Labor Market. Can Institutions Serve as a Protective Shield for Employment?. Duncker & Humblot. https://doi.org/10.3790/978-3-428-53439-5
; Zimmermann, Klaus F. and Wey, Christian. The Economy, Crises, and the Labor Market: Can Institutions Serve as a Protective Shield for Employment?. Duncker & Humblot, 2010. Book. https://doi.org/10.3790/978-3-428-53439-5
Zimmermann, K, Wey, C (eds.) (2010): The Economy, Crises, and the Labor Market: Can Institutions Serve as a Protective Shield for Employment?, Duncker & Humblot, [online] https://doi.org/10.3790/978-3-428-53439-5

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The Economy, Crises, and the Labor Market

Can Institutions Serve as a Protective Shield for Employment?

Editors: Zimmermann, Klaus F. | Wey, Christian

Applied Economics Quarterly. Supplements, Vol. 61

(2010)

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Abstract

The year 2009 was marked by a deep global economic crisis triggered by turbulence on the financial markets. The crisis has affected different countries' economies to differing degrees. The impact on national labor markets was even more severe, and wider in scope, than the resulting economic slump itself. It appears likely that the different institutions are (at least partly) to blame.

Against this backdrop, the 73rd ARGE meeting examined the relationships between institutions - labor market institutions but others as well - and labor market developments in times of crisis. The key question was whether and how institutions can serve as a "protective shield" for employment. The lectures focuses on the following aspects: European labor markets in international comparison, the role of labor market institutions in the crisis, labor market reforms and competition, labor force cohorts, meta-analysis of the minimum wage, and labor market regulation.

Table of Contents

Section Title Page Action Price
Editorial 5
Contents 7
Joachim Möller: Germany’s Job Miracle in the World Recession—Shock-Absorbing Institutions in the Manufacturing Sector 9
Abstract 9
1. Introduction 9
2. Production and Productivity in Manufacturing Industries before and after the Crisis 10
3. Employment Dynamics and Labor Hoarding 15
3.1 Employment Changes in Different Branches of the Economy 15
3.2 The Theory of Labor Hoarding 18
3.3 Labor Hoarding in Manufacturing Industries 18
4. Shocks and Institutions 23
4.1 Working-time Accounts and Alliances for Jobs 23
4.2 Short-time Work Schemes 25
5. Conclusions 25
References 27
Werner Eichhorst, Michael Feil, and Paul Marx: Crisis, What Crisis? Patterns of Adaptation in European Labor Markets 29
Abstract 29
1. Introduction 29
2. Labor Market Institutions and Labor Market Adjustment 30
3. Mapping Patterns of Labor Market Flexibility 32
4. Different Models of Flexibility and the Current Crisis 36
5. Quantitative Analysis 39
5.1 Assessing the Role of Labor Market Institutions 39
5.2 Dynamic Simulations 44
6. Case Studies 47
6.1 Germany: Employment Stability despite Strong Export Orientation 47
6.2 Denmark 48
6.3 Spain 50
6.4 United Kingdom 51
7. Conclusion 52
References 54
Annex 1: Channels of Flexibility and Associated Indicators 56
Annex 2: Structure of the Composite Indicator with Scores for Sub-indicators (Circled Numbers) 57
Antje Mertens: Crisis, What Crisis? Patterns of Adaptation in European Labor Markets. Comment 59
Introduction 59
1. Flexibility Indicators and External Functional Flexibility 60
2. Quantitative Analysis 60
3. Detailed Country Analysis 61
References 63
Jens Boysen-Hogrefe et al.: The Role of Labor Market Institutions in the Great Recession 65
Abstract 65
1. Introduction 65
2. Methodology 67
3. Model Economy 68
3.1 General Structure 68
3.2 The Labor Market 69
4. The Effects of Different Labor Market Institutions 70
4.1 Firing Costs 70
4.2 Short-Time Work 73
4.3 Wage Formation 76
5. Conclusions 79
References 79
Appendix: Data Sources 80
Claus Schnabel: The Role of Labor Market Institutions in the Great Recession. Comment 83
1. Theoretical Modeling 84
2. Empirical Analysis 85
3. Further Labor Market Institutions and their Impact on Employment 86
4. Conclusion 87
References 87
Alex Herzog-Stein / Camille Logeay: Labor Market Reforms, Hysteresis, and Business Cycles in Germany: A SVAR Approach to Explain Unemployment Developments 89
Abstract 89
1. Introduction 89
2. Labor Market Reforms in Germany 91
3. Labor Market Institutions, Hysteresis, and Aggregate Demand: Theoretical Considerations and Empirical Evidence 92
3.1 Institutions and Unemployment 93
3.2 Hysteresis and Unemployment 95
4. Labor Market Rigidity and the Beveridge Curve 96
5. Institutional Factors, Business Cycles and Hysteresis: A Time Series Analysis 98
5.1 Comparing Business Cycles: A Descriptive Comparative Approach 98
5.2 VAR AND VECM Analyses: An Econometric Approach 102
5.2.1 Description and Statistical Properties of the Data 102
6. Econometric Results 103
7. Conclusion 112
References 113
Appendix 1 116
Appendix 2 117
Appendix 3 118
Jürgen Jerger: Labor Market Reforms, Hysteresis, and Business Cycles in Germany: A SVAR Approach to Explain Unemployment Developments. Comment 121
References 123
Martin Dietz / Michael Stops / Ulrich Walwei: Safeguarding Jobs through Labor Hoarding in Germany 125
Abstract 125
1. Introduction 125
2. Labor Hoarding as a Response to Economic Shocks 126
3. The Impact of Labor Hoarding and Short-time Work from a Macro Perspective 132
4. Labor Hoarding and Short-time Work at the Firm Level 141
5. Conclusions 145
References 147
Olaf Hübler: Safeguarding Jobs through Labor Hoarding in Germany. Comment 151
1. Introduction 151
2. Arguments for and against Labor Hoarding and Short-time Work 152
3. Problems with the Empirical Determination of Labor Hoarding 153
4. Existing Empirical Evidence to Studies of Short-time Work 156
5. New Results from the IAB Establishment Panel 157
5.1 Database and Descriptive Statistics 157
5.2 Econometric Results 159
6. Conclusions 164
References 165
Bernhard Boockmann: The Combined Employment Effects of Minimum Wages and Labor Market Regulation—a Meta-Analysis 167
Abstract 167
1. Introduction 167
2. Meta-Analysis and Minimum Wage Research 169
3. Data 170
4. Empirical Model 173
5. Results 176
6. Interpretation and Conclusions 180
References 181
Appendix: Studies Included in the Sample 183
Alexandra Spitz-Oener: The Combined Employment Effects of Minimum Wages and Labor Market Regulation—a Meta-Analysis. Comment 187
References 188
Participants 189