Dustmann, Chr., Fitzenberger, B., Schönberg, U., Spitz-Oener, Al., “From sick man of Europe to economic superstar: Germany’s resurgence and the lessons for Europe”, www.voxeu.org, 3February.
In a slow-growth, high-unemployment continent, Germany’s performance stands out. The success is often ascribed to the politically difficult Hartz labour-market reforms. This column discusses evidence to the contrary. The Hartz reforms played no essential role. Rather, the key was the threat of offshoring to central Europe together with the pre-Hartz structure and autonomy of the German labour-market institutions. This structure allowed trade unions to make wage concessions necessary to adapt to the new realities. Other nations should decentralise bargaining to the firm level while keeping workers’ representatives.
Relevant Posts
- Tridico, P., (2013), “The impact of the economic crisis on EU labour markets: A comparative perspective”, International Labour Review, Vol. 152, N.2, pp. 175-190.
- De Molli, V., (2013), “Looking at Europe’s Jobs Challenge: ‘A Way Out Does Exist!’”, EconoMonitor, 24 September.