Cover IMF Staff Country Reports
Germany: Selected Issues
Author:
International Monetary Fund
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 1997: Issue 101
Language:
English
Publication Date:
11 Nov 1997
DOI:
https://doi.org/10.5089/9781451810318.002
ISBN:
9781451810318
ISSN:
1934-7685
Pages:
167
Keywords:
ISCR; CR; enterprise; Länder; replacement rate; labor market; wage-price mechanism; monetary policy; dispersion pattern; Unemployment rate; Pension spending; Pensions; Wage gap; Unemployment; Global; Eastern Europe; Europe
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This Selected Issues paper analyzes labor market asymmetries and macroeconomic adjustment in Germany. Empirical work reported shows that in Germany, negative demand shocks increase the unemployment rate by more than the decrease in the unemployment rate caused by a comparable-sized positive demand shock. The contribution of labor costs to explaining the high level of unemployment, particularly since unification, is studied. Empirical estimates are obtained for the wage gap—the deviation of actual labor costs from warranted labor costs based on estimated production functions assuming competitive factor markets and full employment.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund
Volume 1997: Issue 101