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Did the German Model Survive the Labor Market Reforms?

Did the German Model Survive the Labor Market Reforms? This paper discusses the specific features of the German model as a specific variety of capitalism that is distinct from the Anglo-Saxon model because it builds more on social security and social partnership. It argues that the German model has experienced increasing pressure due to growth in systemic unemployment since the mid-1970s. The situation worsened as a result of the financial distress experienced after re-unification. Therefore, although painful for some groups of workers, the labor market reforms implemented from 2003 to 2005 were necessary to keep the German model alive. I argue that a certain erosion of the German model resulting from less collective bargaining coverage, labor market segmentation and higher wage inequality has falsely been attributed to the reforms. Rather, these phenomena are caused by long-run trends that were already occurring in the 1990s or even earlier. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal for Labour Market Research Springer Journals

Did the German Model Survive the Labor Market Reforms?

Journal for Labour Market Research , Volume 48 (2) – Jul 15, 2015

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References (26)

Publisher
Springer Journals
Copyright
Copyright © 2015 by Institut für Arbeitsmarkt- und Berufsforschung
Subject
Economics / Management Science; Labor Economics; Sociology, general; Human Resource Management; Economic Policy; Regional/Spatial Science; Population Economics
ISSN
1614-3485
eISSN
1867-8343
DOI
10.1007/s12651-015-0182-9
Publisher site
See Article on Publisher Site

Abstract

This paper discusses the specific features of the German model as a specific variety of capitalism that is distinct from the Anglo-Saxon model because it builds more on social security and social partnership. It argues that the German model has experienced increasing pressure due to growth in systemic unemployment since the mid-1970s. The situation worsened as a result of the financial distress experienced after re-unification. Therefore, although painful for some groups of workers, the labor market reforms implemented from 2003 to 2005 were necessary to keep the German model alive. I argue that a certain erosion of the German model resulting from less collective bargaining coverage, labor market segmentation and higher wage inequality has falsely been attributed to the reforms. Rather, these phenomena are caused by long-run trends that were already occurring in the 1990s or even earlier.

Journal

Journal for Labour Market ResearchSpringer Journals

Published: Jul 15, 2015

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