Labor Market Analysis and Labor Market Policy in a Global Economy — An Alternative View (Commentary Paper)

  • Jürgen Kromphardt
Conference paper


In their contribution to this volume Berthold/Fehn present an explanation of the causes of the high and persistent unemployment in Europe and especially in Germany and deduce some implications for labor market policy. According to their explanation the main influencing factors are real wage shocks and the wage bargaining results due to “myopic insiders”. In my paper I give an alternative explanation of the evolution of unemployment in Germany which takes the demand side of the product market duly into account.


Wage Rate Real Wage Labor Market Policy Wage Subsidy Structural Unemployment 
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Copyright information

© Springer-Verlag Berlin Heidelberg 2000

Authors and Affiliations

  • Jürgen Kromphardt
    • 1
  1. 1.Technical University BerlinBerlinGermany

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