With the "Ziehharmonika effect" it concerns a term coined/shaped by Hans Werner sense, which is to explain the cause of German unemployment with the small-qualified.

Distribution and causes of unemployment in Germany

Germany has highest unemployment in the OECD comparison with 14,2% with the small qualified ones (less than higher secondary formation, i.e. no occupation graduation or no Abitur). Behind it Great Britain and Finland with 11,9% come. With higher qualification, the secondary formation (occupation graduation or Abitur) unemployment with 7,0% is still very highly in the international comparison, but by far not so dramatic. With persons with university formation Germany with unemployment of 2,6% does not have larger problems than other countries also.

The central problem is thus unemployment with the small qualified ones. There are different interpretation beginnings, why Germany has so a high unemployment ratio with the bad training. During left, keynesianische economists the cause mainly with the absence of the consumer goods oh question justify, assume liberal economist that the construction of the German welfare state is not very favorable. It is discussed besides that the German educational system produces too many small qualified graduates.

The offer-oriented economist and boss of the institute for economic research for economic research Hans Werner sense stand rather to the possible cause secondly specified and coined/shaped the term "Ziehharmonika effect".

Definition

Sense says that the welfare state is designed, like that as it in Germany, for large unemployment within the range of the small-qualified is responsible. It justifies this with the fact that the German welfare state with its wage compensations determines a minimum wage (social welfare assistance), which must be over-bid by the private economy, if an employer-employee relationship is to come. There nobody ready is to be worked for wages, which smaller or on the same level from the State of paid minimum wage is, the complete Lohnskala from downside ago similarly as a Ziehharmonika one push together. Thus within the lower and middle wage range the wages were pushed up over market-vacating level, with which full employment prevails, whereby unemployment develops. Between the minimum wage of the welfare state (social welfare assistance) and the wages deepest on the market a certain distance must exist, thus an employee ready is the employer-employee relationship to be accepted. The secondarylowest wages have again more highly to be as that already "high-tossed" lowest wages on the job market, the third-lowest must again more highly be than the secondarylowest and so on. Thus develop unemployment with the small-qualified. Upward be reduced the effect ever more, why Germany has with the better trained also no problem with unemployment. One must trust thus the market processes more and pay wage subsidies (combination wages), in order with a larger wage spreading small qualified again in work to get.

Criticism

Keynesiani economists such as Rudolf Hickel or Peter Bofinger criticize sense interpretation. Like that already a large wage spreading with many 400"€-Jobs is present. It does not bring anything to shorten the unemployed person far social welfare assistance. Thus go it with only around justifying and making low wages attractive.

Besides they refer to the fact that the German wage compensations hardly differed from those European neighboring countries. In northEuropean countries unemployment is throughout despite clearly high wage compensations under the German.

Furthermore give for instance the PISA study to reference on the fact that high unemployment under unqualified ones can be justified also with a portion of the employees, above average for an industrialized country.

Related links

• ifo point of view No. 49
• ifo point of view No. 72

Articles in category "Ziehharmonikaeffekt"

We found here 1 articles.