Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/3882
Authors: 
Dovern, Jonas
Meier, Carsten-Patrick
Year of Publication: 
2006
Series/Report no.: 
Kiel Working Paper 1295
Abstract: 
Using a newly constructed macroeconometric model for Germany and the rest of the Euro area, we investigate the macroeconomic effects of structural labor market reforms in Germany. We find that neither the fact that Germany can no longer pursue an independent monetary policy nor the possibility that other countries in the Euro area might react to reforms in Germany by implementing labor market reforms themselves constitute impediments to successful reforms. Reforms would relative quickly bring down unemployment and increase GDP significantly. Even former labor market "insiders" would gain as net wages increase due to falling unemployment insurance contributions.
Subjects: 
Macroeconometric model
Germany
Euro area
Labor market reforms
JEL: 
E24
J64
Document Type: 
Working Paper

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