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MindTap-Cengage Learning ng.cengage.com/static/nb/ui/index.html?nbld-6213428nbNodeld-2282879388 tid=567221 1883504599 18667731 7526&elSBN-9781; 337096546#!&parentid;=262050148 MINDTAP Makala Haines News Analysis - Germany's Unemployment Solution-Understanding Worker Incenti... Due on Dec 8 at 11 PM EST Back to Assignment Attempts: Score: 1/1 4. Discussion questions 1. The Hartz reforms decreased the unemployment rate by encouraging people to find jobs more quickly, which is generally viewed as having a positive impact on the economy. On the flip side, what are some downsides to both workers and firms of shortening the amount of time people spend looking for jobs? 2. The 2011 unemployment rate in the United States is even higher than the 2005 unemployment rate in Germany. Could the United States enact similar reforms and expect to see comparable changes? Why or why not? 3. Would you rather live in a society where the odds of finding a job were greater (due to fewer regulations that make it difficult to fire employees) or a society in which once you had a job, it was harder to get fired? 4. What would you expect to happen to the amount of time people are unemployed if the number of weeks they can collect unemployment benefits is decreased? How is this effect similar to or different from decreasing the monthly benefits? To complete this assignment, check the following box. I have read the discussion questions on this page and am finished with this analysis. A-Z O Type here to search 915 PM 12/6/2017Explanation / Answer
What is the Hartz reforms:
In 2002, the unemployment rate in Germany stood at 13.4 percent, after a period of low growth compared with the rest of Europe. The German chancellor, Gerhard Schröder, asked Volkswagen’s HR director, Peter Hartz, to lead a commission on reform in the labour market – bringing down the unemployment rate was a high priority. The Hartz reforms were enacted between 2003 and 2005 and the unemployment rate was down to 5.5 percent by 2012. And yet the reforms were almost uniformly unpopular.
1. The reforms helped the country to bring down its unemployment rate drastically low. but what happens when you force someone to take up the job which is low paid or not up to his skills.
Most jobless people are forced to accept the next job they can find – and often they end up in one so low-paid and part-time that they were still dependent on some sort of state welfare anyway. Then again, the flexibility that allows employers – especially major industrial companies – to take on and lay off part-time shift workers depending on the state of the export market has certainly helped Germany to ride out the global economic crisis in the past three years.
This reform created ineqality in Germany. Germany is the only [EU] country that has seen an increase in labour earnings inequality from the mid 1990s to the end 2000s driven by increasing inequality in the bottom half of the distribution.
2) The prime causs for Germany's success can be traced to the country's coordinated market economy, that works for long term benifit. The US typically focus on short term benifits and this kind of protection may not help to overcome this issue. The short term unemployment suffered a welfare loss.
Labor market policies are different in US than in Germany. US employers prefer layoffs when demand is less and hire workers when demand rises while Germany employers put more workers on shorter hours.
Short time compensation program will not help US in future recession. In Germany, employers benefit from the availability of a flexible working time toolkit and public policies incentivize labor market participation among individual workers.
3. I would prefer to live in a society where odds are finding a job is greater.
4. If unemployment benifits are running out and I am still jobless then:
One can become homeless. it will be difficult to feed my family. I won;t be able to pay mortgages on time.
The financial hardship would make me weak and it is possible i end up taking any job which is not even 25% of my skill set. It is poosible that I don't even look for any job.
What to do:
i will have to cut sown unnecessary spending now
prioritize helath insurance over entertianment.