2020
DOI: 10.1016/j.strueco.2019.10.003
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GDP-employment decoupling in Germany

Abstract: This paper investigates the time-varying relationship between German output and employment growth, in particular their decoupling in recent years. We estimate a correlated unobserved components model that allows for both persistent and cyclical time variation in the employment impact of GDP as well as an autonomous employment component capturing other factors than real output. As one result, we measure a permanent decline in Verdoorn's coefficient as well as pronounced effects of the autonomous employment comp… Show more

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Cited by 25 publications
(23 citation statements)
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“…Real aggregate market dynamics (ITAEE) is positive and directly correlated. Results are consistent in all localities and in non-metropolitan areas, as in Gosh ( 2009), Chiang, Tao and Wong (2015), and Klinger and Weber (2015).…”
Section: Unitary Changes In Crime Ratesupporting
confidence: 54%
“…Real aggregate market dynamics (ITAEE) is positive and directly correlated. Results are consistent in all localities and in non-metropolitan areas, as in Gosh ( 2009), Chiang, Tao and Wong (2015), and Klinger and Weber (2015).…”
Section: Unitary Changes In Crime Ratesupporting
confidence: 54%
“…It is widely recognized that the decoupling of GDP growth from resource use and emissions is important to meet the global climate change and sustainable development challenges. According to Klinger and Weber (2020), the evidence of Germany shows that the decoupling of GDP and employment depends on the structural changes of economic system and the growing importance of service sector. Nevertheless, the decoupling of GVA growth from labour force in agriculture, where the share of employment in the structure of economy used to have a historically important role, has both negative and positive aftermaths.…”
Section: Discussionmentioning
confidence: 99%
“…First, it needs to be addressed whether “cycle” means the business cycle or the labour market cycle. Beyond the fact that the latter usually lags the former, Klinger and Weber [ 13 ], for instance, document a sizeable decoupling between business cycle and the labour market in Germany, especially so during the last decade. To cover both, gross domestic product ( GDP ) and labour market tightness ( ), defined as number of vacancies divided by the number of unemployed, are used.…”
Section: Cyclicality and Seasonality Of Search And Placement Activitimentioning
confidence: 99%