The Use of Flexible Measures to Cope with Economic Crises in Germany and Brazil

66 Pages Posted: 4 Dec 2011

See all articles by Werner Eichhorst

Werner Eichhorst

Institute for the Study of Labor (IZA)

Paul Marx

IZA Institute of Labor Economics

José Pastore

affiliation not provided to SSRN

Abstract

This study gives a comparative overview of labor market dynamics and institutional arrangements in Germany and Brazil with particular emphasis on industrial relations, wage setting, unemployment benefits, employment protection and vocational training. The paper shows that institutions determine the mode of adjustment to changing economic conditions and the role of standard vs. non-standard contracts. Whereas internal flexibility via shorter working time was a dominant mode of adjustment during the 2008-09 crisis in the German manufacturing sector, in Brazil such plant-level flexibility to avoid dismissals was less prominent.

Keywords: labor market flexibility, Germany, Brazil, working time, dismissal protection

JEL Classification: J21, J42, J52

Suggested Citation

Eichhorst, Werner and Marx, Paul and Pastore, José, The Use of Flexible Measures to Cope with Economic Crises in Germany and Brazil. IZA Discussion Paper No. 6137. Available at SSRN: https://ssrn.com/abstract=1968088

Werner Eichhorst (Contact Author)

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Paul Marx

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

José Pastore

affiliation not provided to SSRN

No Address Available

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