calculation, the export-oriented manufacturing sector of Germany experienced a decrease in unit labour costs by 25% between the …

consequently consumption dampening accompanied by beggar-thy-neighbour effects, harming Germany’s trade partners. We check up on …) are only partially driven by the reforms. However, we do not find that the reforms contribute to Germany’s trade surplus …

countries - Germany and France - on the domestic and foreign economy. We test the implications of the gains in matching … labour market, which replicates the data quite well. We then explore the reform possibilities in the French labour market and …