The German labor market reforms seem to be on the right track. However, they need to be adjusted especially on the organizational side to make them more effective. The labor market instruments can be concentrated on temporary company wage subsidies, training measures and financial incentives for...

The efficiency of the labour market critically depends on the design of its institutions with employment protection legislation (EPL) playing a special role here. However, since formal laws can be observed or ignored to varying degrees, the actual enforcement regime shapes incentives and...