By Hans H. Bass, Toshihiko Hozumi, Uwe Staroske
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Additional resources for Labor Markets and Labor Market Policies between Globalization and World Economic Crisis: Japan and Germany
Also new industries and new enterprises will have emerged. Having supported private consumption rather than future-oriented industries, countries such as Japan and Germany will again fall behind. Extrapolating from what we see today, “living deads” will have survived with government subsidies but the increased world-wide competition will force them to continue to cut expenses, especially labor costs – which means that not only the prospects for labor in general will deteriorate, but also the share of precarious employment will continue to grow.
Labour market institutions, social safety nets, and social security systems are threatened or even eroded globally. The third issue relates to the consequences of all that for Japan and for Germany as labour market institutions and labour market reforms are discussed and policy implications are highlighted. A simple-minded look at more flexible labour markets and respective reforms is no longer appropriate (although there was never a clear definition of what more flexibility of labour markets really means in the context of historically evolving labour market institutions).
Obviously, this is a probable scenario at least as far as the short-term oriented attempts to rescue sunset enterprises by (conventionally called “Keynesian”) deficitfinanced spending and winning votes by consumer subsidies is concerned, given the underrepresentation of the interests of future voters in elections and the intention of politicians to maximize actual votes. “We have to re-think, even thoroughly 6 In sunset industries (shrinking total profits) no newcomers will be expected, therefore the individual firm’s rent from lobbying will be constant or will even increase over time (if other firms withdraw from the market).
Labor Markets and Labor Market Policies between Globalization and World Economic Crisis: Japan and Germany by Hans H. Bass, Toshihiko Hozumi, Uwe Staroske