Journal Article

Sclerosis and large volatilities: Two sides of the same coin

Economic Letters

The labor market in Germany is more sclerotic and volatile than in the US. We show theoretically that sclerosis and large volatilities are two sides of the same coin. Both may be driven by large hiring costs and low quit rates.


Hermann Gartner
Christian Merkl
Thomas Rothe


Publication Date
JEL Classification
J6, E24, E32