More employment and less unemployment : America - are you any better off?

Abstract

"In view of the increasing labour market problems in Germany, eyes have been turned towards the USA and its 'employment miracle' since as early as the 1980s. And indeed since 1960 the USA has recorded a more or less steady increase in its employment figures. Also the volume of work has risen constantly. It has been possible to integrate the labour force potential, which has been growing by almost 2% per year, fully into the labour market and to lower the unemployment rate. The new jobs emerged above all in the service sector. In addition to the so-called 'bad jobs' many 'good jobs' were also created. The low growth in productivity and income as well as the increase in poverty and the serious social problems associated with it constitute the downside of the American 'employment miracle'. The strong increase in employment in the USA can not essentially be attributed to a stronger economic growth than in Germany, but to a far higher employment intensity of the economic growth. This is based on various elements of the American economic system acting in combination. The important elements for the development of the labour market are the decentralised wage determination system, the low social security, granted for only a limited period, the high level of labour market flexibility and the low level of taxes and social security contributions to be paid from earned income. These elements have contributed to more and more of the labour force being absorbed into the labour market. It is possible to derive some points of departure for overcoming Germany's labour market problems from the experiences made in America." (Author's abstract, IAB-Doku) ((en))

Cite article

Ochel, W. (1998): Mehr Beschäftigung und weniger Arbeitslosigkeit. Amerika, hast du es besser? In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Vol. 31, No. 2, p. 262-276.