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Starting in 1985, (West) German unions began to reduce standard hours on an industry by industry basis, in an attempt to lower unemployment. Whether work-sharing works - whether employment rises when hours per worker are reduced - is theoretically ambiguous. I test this using both individual...
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West Germany's Employment Promotion Act of 1985 facilitated the use of fixed term contracts and increased the number of dismissals above which the employer is required to establish a 'social plan' (involving severance payments). The effect of this reduction in 'firing costs' on movements in...
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Germany experienced an even deeper fall in GDP in the Great Recession than the United States with little employment loss. Employers' reticence to hire in the preceding expansion - associated in part with a lack of confidence it would last - contributed to an employment shortfall equivalent to 40...
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