Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
I still don't understand how welfare and unemployment benefits (aka Hart IV) are related to the rise of wages, or lack thereof.

Can you explain?

by cris0 on Tue Feb 14th, 2012 at 04:53:27 PM EST
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Reducing unemployment benefits and making the unemployed jump through useless hoops will reduce wages, no?

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Feb 14th, 2012 at 04:58:08 PM EST
[ Parent ]
Reducing welfare and unemployment benefits creates greater precarity for the less well-off, leading to employers being able to impose less advantageous working conditions and lower wages.

And in fact, unit labour costs in Germany have fallen in relation to those of other eurozone countries since the implementation of Hartz IV.

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Feb 14th, 2012 at 04:58:18 PM EST
[ Parent ]


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