TY - JOUR
T1 - Unemployment in interwar Germany
T2 - An analysis of the labor market, 1927-1936
AU - Dimsdale, Nicholas H.
AU - Horsewood, Nicholas
AU - Van Riel, Arthur
PY - 2006/9
Y1 - 2006/9
N2 - This article contributes to the debate on the causes of unemployment in interwar Germany. It applies the Layard-Nickell model of the labor market to interwar data. The results indicate that demand shocks, combined with nominal inertia in the labor market, were important in explaining unemployment. Real wage pressures due to procedures for wage determination were a major influence on unemployment, but were partly offset by movements in other supply-side variables, such as the replacement ratio and the pricing policy of cartels. Demand- and supply-side variables were mutually reinforcing in the Great Depression and in the recovery under the Nazis.
AB - This article contributes to the debate on the causes of unemployment in interwar Germany. It applies the Layard-Nickell model of the labor market to interwar data. The results indicate that demand shocks, combined with nominal inertia in the labor market, were important in explaining unemployment. Real wage pressures due to procedures for wage determination were a major influence on unemployment, but were partly offset by movements in other supply-side variables, such as the replacement ratio and the pricing policy of cartels. Demand- and supply-side variables were mutually reinforcing in the Great Depression and in the recovery under the Nazis.
UR - http://www.scopus.com/inward/record.url?scp=33749073754&partnerID=8YFLogxK
U2 - 10.1017/S0022050706000325
DO - 10.1017/S0022050706000325
M3 - Article
AN - SCOPUS:33749073754
SN - 0022-0507
VL - 66
SP - 778
EP - 808
JO - Journal of Economic History
JF - Journal of Economic History
IS - 3
ER -
