Germany and the United States in coronavirus distress: internal versus external labour market flexibility

Herzog-Stein, Alexander; Nüß, Patrick; Peede, Lennert; Stein, Ulrike

doi:10.1186/s12651-022-00316-5

Cited by 13 publications

(6 citation statements)

References 23 publications

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“…The handling of the financial crisis of 2008/2009 without any major increase in unemployment became a model for the COVID crisis. Even in smaller companies, including in the service sector with less protection against dismissal, redundancies were avoided in the COVID crisis (Herzog-Stein et al, 2022).…”

Section: Promoting Internal Transformationmentioning

confidence: 99%

Employment policy for a just transition – the example of Germany

Bösch¹

2023

Transfer: European Review of Labour and Research

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The green transformation and Industry 4.0 are associated with considerable risks for workers in countries with dual labour markets such as Germany. The biggest risks are wage losses due to the involuntary transition into the precarious secondary labour market and insufficient education and training for the new ‘green’ jobs. Institutional reforms are necessary for a ‘just transition’. The ongoing reforms in Germany in education and training and wage setting show that the transition is a critical juncture in which new stakeholder constellations have the opportunity for non-path-dependent changes from a dual to an inclusive employment system with better work. The approaches adopted in recent German reforms are of overarching interest. Featuring the strongest manufacturing base in Europe, Germany is under particularly high pressure to fully embrace the green transformation and digitalisation. The country has learned from other countries and, conversely, can perhaps also help trigger a just transition in other countries.

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Section: Promoting Internal Transformationmentioning

confidence: 99%

Employment policy for a just transition – the example of Germany

Bösch¹

2023

Transfer: European Review of Labour and Research

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“…According to the study findings, Germany firmly emphasized the use of internal flexibility measures, especially short-time work (STW) to safeguarding employment. Moreover, the authors argue that, unlike in the U.S., discretionary changes to unemployment benefits (Social Security Package) have had only a minor impact in securing the income of the unemployed in Germany (Herzog-Stein et al, 2022).…”

Section: The Background -Coronavirus Outbreak and Labor Market Crisismentioning

confidence: 99%

Viruses don't need a passport to affect labor markets – findings from a Polish-German study on combating unemployment during the COVID-19 pandemic

Fleßa

Porada-Rochoń

Kuntosch

et al. 2023

Economics &Amp; Sociology

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Labor markets have been strongly affected by the COVID-19 crisis. Much empirical evidence exists on how they operated since the COVID-19 outbreak, illustrated predominantly by public statistics. However, there is limited primary research on labor market stakeholders who experienced significant changes in border regions. The aim of this study is to explore the perceptions and experiences of labor market experts, especially entrepreneurs, regarding labor market functioning in border regions of Poland and Germany after the COVID-19 outbreak. The main focus has been put on examining how the COVID-19 crisis affected enterprises in terms of employment and how the labor market stakeholders assessed mitigation measures undertaken in the border regions. The study utilizes a mix-method approach. Primary data have been gathered through an online questionnaire targeted at entrepreneurs and labor officers in Germany. Next, a qualitative descriptive study design has been developed, involving one-on-one interviews and focused discussions. The analysis revealed several positive and negative consequences of the COVID-19 pandemic on the functioning of the labor market in border regions. The study explored differences in the management of the unemployment crisis in Poland and Germany in measures undertaken to mitigate the negative impact of the pandemic. Crucial issues, such as cross-border cooperation and communication have also been discussed. The study highlights the role of labor market stakeholders’ perceptions and experiences in defining future cross-border joint preparatory plans and strategies to combat potential threats and unpredictable situations. The findings of the study revealed that there is a strong need to establish cross-border cooperation in terms of tackling unemployment. It has also been indicated that border regions need an approach to combating crises such as pandemics that differs from that of other interior regions. That highlights the importance of joint security policy adaptations and the need to develop joint

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“…Previous research has shown that STW was largely effective in protecting jobs during the previous financial crisis in 2007/2008 (Kopp & Siegenthaler, 2021). The same positive effects seem to have emerged during the COVID-19 pandemic (Herzog-Stein et al, 2022). However, during the times when STW has been used most extensively, media reports have claimed that STW is exploited by employers.…”

Section: Introductionmentioning

confidence: 97%

“…In contrast to previous crises, this massive job loss was accompanied by a decline in job search by the unemployed (Forsythe et al, 2020b). Although the German economy was hit very similarly, as its GDP dropped by 9.9% (as compared to 8.9% in the United States) in the second quarter of 2020, its labor market's reaction was relatively modest (Herzog‐Stein et al, 2022). A major difference between the U.S. and the German labor market is often ascribed to the latter's generous use of short‐time work (STW), which allows employers to put workers on hold instead of engaging in massive job terminations.…”

Section: Introductionmentioning

confidence: 99%

Free riding on short‐time work allowances? Results from an experimental survey design

Bossler

Osiander

Schmidtke

et al. 2023

Kyklos

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Short‐time work (STW) is a policy measure whose prominence increases during economic crises and is intended to stabilize the labor market. Employers can temporarily reduce employees' working hours, which are in turn paid by the social security system in the meantime. Although short‐time work—by design—saves employers a fraction of their wage costs, little is known about free riding behavior when using this option. Accordingly, we analyze the employee‐reported free riding experience with respect to longer actual working hours than accounted for in employees' short‐time work allowances, the unchanged workloads experienced by these employees, and announced lay‐off decisions. Since these questions are certainly sensitive, we employ the crosswise model, a privacy‐preserving technique, in a random half of the sample. Our results show significant employee‐reported prevalences across all dimensions and a significant association between free riding and workers' job dissatisfaction. These findings thus highlight the importance of the crosswise model in uncovering these findings and demonstrate a specific drawback in the application of short‐time work.

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Germany and the United States in coronavirus distress: internal versus external labour market flexibility

Cited by 13 publications

References 23 publications

Employment policy for a just transition – the example of Germany

Employment policy for a just transition – the example of Germany

Viruses don't need a passport to affect labor markets – findings from a Polish-German study on combating unemployment during the COVID-19 pandemic

Free riding on short‐time work allowances? Results from an experimental survey design

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