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Urheberrechtshinweis / Copyright notice
Bitte beziehen Sie sich beim Zitieren dieses Dokumentes immer auf folgende URN: urn:nbn:de:kobv:517-opus-9036 URL: http://opus.kobv.de/ubp/volltexte/2006/903/ Drechsler, Denis
Unemployment in Germany and the Eurosclerosis debate : Can the Hartz reforms induce higher employment?
Kurzfassung auf EnglischMany European countries have experienced a significant increase of unemployment in recent years. This paper 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 paper 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 the unemployment problem in Germany and critically discusses new reform efforts. In particular this section analyzes whether the recently enacted Hartz reforms can induce higher employment.
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