Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/3101 
Year of Publication: 
2003
Citation: 
[Journal:] The world economy [ISSN:] 0378-5920 [Volume:] 26 [Issue:] 10 [Publisher:] Blackwell [Place:] Oxford [Year:] 2003 [Pages:] 1481-1501
Publisher: 
Blackwell, Oxford
Abstract: 
The paper empirically examines three possible reasons for the high and rising unemployment of low-skilled employees in Germany: (i) an upsurge in interindustry trade, (ii) a skill-biased technical change, and (iii) a failure of labour market adjustment. The empirical analyses indicate that an exogenous wage-setting process as well as a bundle of factors, including a skill-biased technical and structural change, have contributed to the decline in relative demand for low-skilled employees in Germany. Thus, economic policy in Germany should focus on improving the employability of workers in the lower segment of the labour market and on raising the adjustment flexibility, above all the flexibility of the wage structure, of the German labour market.
JEL: 
J31
F11
O30
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)

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