Working Paper

The Failure of the German Labor Market


  • Siebert
  • H.
Publication Date

The paper analyzes why Germany experiences the high and sticky unemployment. It looks at wage policy and proposes a new approach to measure productivity growth when unemployment increases. It studies the position of trade unions and the institutional set-up of the labor market. It looks at the role of the reservation wage for the lower segment of the labor market and discusses the impact of contributions to social security on the demand for labor.


JEL Classification
J0, I3

Key Words

  • Anspruchslohn
  • institutional arrangement
  • reservation wage
  • social entrepreneurship
  • unemployment