In Germany, the employment response to the post-2007 crisis has been muted compared toother industrialized countries. Despite a large drop in output, employment has hardlychanged. In this paper, we analyze the determinants of German firms’ labor demand duringthe crisis using a firm-level panel...

According to the Hutchens (1999) model, early retirement is not explained as a result ofmaximizing expected individual utility but rather as a demand-side phenomenon arising froma firm’s profit-maximizing behaviour...