Labour market reforms and income distribution in Germany

Author/s Laura Chies
Publishing Year 2013 Issue 2013/2
Language Italian Pages 23 P. 42-64 File size 814 KB
DOI 10.3280/ES2013-002003
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The effectiveness of labour market reforms in promoting growth and employment is very weak in the context of rising inequalities in industrial countries. Labour economists underline the worsening of inequality in earnings, macroeconomists focus on the reduction of the wage share, and policy makers must cope with growing households poverty. This paper shows that the institutional reforms aimed at increasing labour market flexibility have, in the end, reduced internal demand compressing the wages of marginal workers and slowing down both productive investments and aggregate growth. The analysis then focuses on the process of welfare state retrenchment taking place in Germany since the mid nineties, and on the evolution of inequalities as a consequence of the introduction of the Euro and of the failed European miracle.

Keywords: Income Inequality, Labour Market Reform and Structure

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Laura Chies, Riforme del mercato del lavoro e distribuzione del reddito in Germania in "ECONOMIA E SOCIETÀ REGIONALE " 2/2013, pp 42-64, DOI: 10.3280/ES2013-002003