This paper gives a short overview of the unemployment problem in Germany during the last decade. In a disequilibrium macroeconomic framework there are strong linkages between spillovers of domestic demand on trade flows and labor demand. In the econometric part of the paper these linkages are...

At the turn of the millennium three frequently cited potential causes of new challenges for wage policy in Germany are revisited in this study: skilled- biased technological progress, the increasing international integration of labor and product markets, and the monetary integration of the EMU....