Were the Hartz Reforms Responsible for the Improved Performance of the German Labour Market?

Metin Akyol, Michael Neugart, S. Pichler

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9 Citations (Scopus)


From 2005 to 2011 employment rose and unemployment rates declined considerably in Germany. This favourable development followed the labour market reforms initiated in 2003, and there has been a tendency to attribute the improved labour market performance to those reforms. Causal micro-evaluations of the various measures, however, show hardly any effects on variables that can be related to employment. Rather, it seems that employment increased in response to a process of wage moderation that had already begun in the 1990s. It is possible that this moderation was itself partially a product of the reforms, but this needs further investigation.
Original languageEnglish
Pages (from-to)34-47
JournalEconomic Affairs
Issue number1
Publication statusPublished - 2013
Externally publishedYes

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