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Title:Extensive vs. intensive margin in Germany and the United States: Any differences? PDF Logo
Authors:Merkl, Christian
Wesselbaum, Dennis
Issue Date:2010
Series/Report no.:Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5117
Abstract:This paper analyzes the role of the extensive vis-à-vis the intensive margin of labor adjustment in Germany and in the United States. The contribution is twofold. First, we provide an update of older US studies and confirm the view that the extensive margin (i.e., the adjustment in the number of workers) explains the largest part in the overall variability in aggregate hours. Second, although the German labor market structure is very different from its US counterpart, the quantitative importance of the extensive margin is of similar magnitude.
Subjects:business cycle
extensive and intensive margin
variance decomposition
JEL:C10
E32
J21
Persistent Identifier of the first edition:urn:nbn:de:101:1-201010132728
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
Publikationen von Forscherinnen und Forschern des IfW

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