This paper summarises the institutional arrangements and prerequisites for a new social partnership, necessary for the successful completion of labour market reform in western Germany. It does this by drawing on key policies and proposals highlighted and explored in the papers of this special...

Unemployment in Germany remains a major policy issue. The unemployment problem began with ratchet effects following the two crude oil‐price shocks in the 1970s. In each case, a persistent increase in (long‐term) unemployment became particularly noticeable, with the slow rate of job creation...

Behavioural economics and economic experiments can offer valuable insights to policymakers. Liberal or soft paternalism assumes that governmental nudging through the conscious setting of defaults in order to overcome potential behavioural anomalies can lead to better outcomes without giving up...