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Labour-Market Reforms In Denmark and Germany - Part 1

A number of labour-market reforms were introduced in Germany in the 2000s, which are in many ways similar to the Danish labour-market reforms of the 1990s. In both countries, the reforms had a positive effect on structural unemployment. In Denmark, the reforms were introduced at a time of rising labour demand; in Germany, on the other hand, reforms were introduced at a time of more subdued demand. Despite reform similarities, the labour-market structure in the two countries remains different, and consequently the labour markets have reacted differently to the recent economic backlash.