Offshoring and labour market reforms : modelling the German experience

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dc.contributor.authorHellier, Joëlde
dc.contributor.authorBeißinger, Thomasde
dc.contributor.authorChusseau, Nathaliede
dc.date.accessioned2024-04-08T08:51:08Z
dc.date.available2024-04-08T08:51:08Z
dc.date.created2015-04-09
dc.date.issued2015
dc.description.abstractA usual interpretation of the high performance of the German economy since 2005 is that the Hartz labour market reforms have boosted German competitiveness, resulting in higher exports, higher production and lower unemployment. This explanation is at odds with the sequence of observed facts. We propose and model an alternative scenario in which offshoring explains the gains in competitiveness but increases unemployment and inequality, and the subsequent labour market reforms lower unemployment by lessening the reservation wage and expanding the non-tradable sector. The model replicates the developments of the German economy since 1995: 1) Germany offshores more intensively than other advanced countries; 2) The increase in competitiveness and in the exports/production ratio occurs before the implementation of the labour market reform, and this comes with both higher inequality and higher unemployment; 3) The implementation of the reform reduces unemployment, but also decreases the exports/production ratio and increases inequality. The model also predicts that the reduction in unemployment in Germany would have occurred without the Hartz reforms, but later and less intensively. We finally discuss the possible extension of this ‘strategy’ to other Eurozone countries, and alternative policies that activate similar mechanisms without increasing inequality.en
dc.identifier.swb428656463
dc.identifier.urihttps://hohpublica.uni-hohenheim.de/handle/123456789/5898
dc.identifier.urnurn:nbn:de:bsz:100-opus-10691
dc.language.isoeng
dc.relation.ispartofseriesHohenheim discussion papers in business, economics and social sciences; 2015,04
dc.rights.licensepubl-mit-poden
dc.rights.licensepubl-mit-podde
dc.rights.urihttp://opus.uni-hohenheim.de/doku/lic_mit_pod.php
dc.subjectGermanyen
dc.subjectInequalityen
dc.subjectLabour market reformen
dc.subjectUnemploymenten
dc.subject.ddc330
dc.subject.gndArbeitslosigkeitde
dc.subject.gndOffshoringde
dc.subject.gndArbeitsmarktpolitikde
dc.titleOffshoring and labour market reforms : modelling the German experiencede
dc.type.dcmiTextde
dc.type.diniWorkingPaperde
local.accessuneingeschränkter Zugriffen
local.accessuneingeschränkter Zugriffde
local.bibliographicCitation.publisherPlaceUniversität Hohenheimde
local.export.bibtex@techreport{Hellier2015, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/5898}, author = {Hellier, Joël and Beißinger, Thomas and Chusseau, Nathalie et al.}, title = {Offshoring and labour market reforms : modelling the German experience}, year = {2015}, school = {Universität Hohenheim}, series = {Hohenheim discussion papers in business, economics and social sciences}, }
local.export.bibtexAuthorHellier, Joël and Beißinger, Thomas and Chusseau, Nathalie et al.
local.export.bibtexKeyHellier2015
local.export.bibtexType@techreport
local.faculty.number3de
local.institute.number520de
local.opus.number1069
local.series.issueNumber2015,04
local.series.titleHohenheim discussion papers in business, economics and social sciences
local.universityUniversität Hohenheimde
local.university.facultyFaculty of Business, Economics and Social Sciencesen
local.university.facultyFakultät Wirtschafts- und Sozialwissenschaftende
local.university.instituteInstitute for Economicsen
local.university.instituteInstitut für Volkswirtschaftslehrede

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