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The German Political Economy Between Deregulation and Re-regulation: Party Discourses on Minimum Wage Policies
[journal article]
Abstract
In the German political economy of the early 21st century, labor market policymaking has shifted toward deregulation and liberalization. In particular, the so-called Hartz labor market reforms of the Social Democratic Party and Green Party government, introduced in 2002 and 2003, pushed for emplo... view more
In the German political economy of the early 21st century, labor market policymaking has shifted toward deregulation and liberalization. In particular, the so-called Hartz labor market reforms of the Social Democratic Party and Green Party government, introduced in 2002 and 2003, pushed for employment growth in low-wage and deregulated employment sectors. This article focuses on one of the key debates triggered by Germany’s labor market deregulation after 2002, namely whether the introduction of a statutory minimum wage is required to re-regulate the country’s labor market. Based on interviews with members of the five political parties in the German federal parliament and analysis of each party’s policy-making discourses over time (2002-2012), the article suggests that the deregulation of the last decade has triggered demand for new policies of reregulation. This would include the introduction of a statutory minimum wage in Germany at some future point in time. However, such re-regulation does not question earlier labor market liberalization but serves as a political side-payment to ingrain the shift of the German political economy toward a more liberal regime.... view less
Keywords
Federal Republic of Germany; market economy; labor market policy; Hartz-Reform; liberalization; deregulation; employment policy; low income; minimum wage; collective agreement; collective bargaining; wage policy; job security; trade union policy; workers' representation
Classification
Labor Market Research
Labor Market Policy
Income Policy, Property Policy, Wage Policy
Free Keywords
coordinated market economy; labor market liberalization; low-wage employment; minimum wage policy; party discourse
Document language
English
Publication Year
2012
Page/Pages
p. 91-120
Journal
The Korean Journal of Policy Studies, 27 (2012) 2
Status
Published Version; reviewed