Abstract

http://ssrn.com/abstract=1663137
 
 

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Extensive vs. Intensive Margin in Germany and the United States: Any Differences?


Christian Merkl


Kiel Institute for the World Economy; University of Kiel; Institute for the Study of Labor (IZA)

Dennis Wesselbaum


affiliation not provided to SSRN


IZA Discussion Paper No. 5117

Abstract:     
This paper analyzes the role of the extensive vis-à-vis the intensive margin of labor adjustment in Germany and in the United States. The contribution is twofold. First, we provide an update of older U.S. studies and confirm the view that the extensive margin (i.e., the adjustment in the number of workers) explains the largest part in the overall variability in aggregate hours. Second, although the German labor market structure is very different from its U.S. counterpart, the quantitative importance of the extensive margin is of similar magnitude.

Number of Pages in PDF File: 9

Keywords: business cycle, extensive and intensive margin, variance decomposition

JEL Classification: C10, E32, J21

working papers series





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Date posted: August 24, 2010  

Suggested Citation

Merkl, Christian and Wesselbaum, Dennis, Extensive vs. Intensive Margin in Germany and the United States: Any Differences?. IZA Discussion Paper No. 5117. Available at SSRN: http://ssrn.com/abstract=1663137

Contact Information

Christian Merkl (Contact Author)
Kiel Institute for the World Economy ( email )
P.O. Box 4309
Kiel, D-24100
Germany
University of Kiel ( email )
Olshausenstr. 40
D-24118 Kiel, Schleswig-Holstein 24118
Germany
Institute for the Study of Labor (IZA) ( email )
P.O. Box 7240
Bonn, D-53072
Germany
Dennis Wesselbaum
affiliation not provided to SSRN
No Address Available
Feedback to SSRN


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