Germany and the United States in coronavirus distress: internal versus external labour market flexibility.

Germany and the United States pursued different economic strategies to minimise the impact of the Coronavirus Crisis on the labour market. Germany focused on safeguarding existing jobs through the use of internal flexibility measures, especially short-time work (STW). The United States relied on a mix of external flexibility and income protection. On this basis, we use macroeconomic time series to examine the German strategy of securing employment through internal flexibility by contrasting it with the chosen strategy in the United States. In Germany, temporary cyclical reductions in working hours are mainly driven via STW. US unemployment rose at an unprecedented rate, but unlike in previous recessions, it was mostly driven by temporary layoffs. However, a closer look at the blind spots of the chosen strategies in both countries showed that despite the different approaches, people in weaker labour market positions were less well protected by the chosen strategies.

[Introducing the Citizen's Income (Bürgergeld): Making Bold Changes]. / Beim Übergang zum Bürgergeld mutig große Veränderungen wagen.

The new German federal government wants to replace the unemployment benefit II (Arbeitslosengeld II) with a so-called citizen's income ("Bürgergeld"). In doing so, it needs to make major changes. Measures outlined in the coalition agreement indicate that the existing imbalance in the so called support and claim-approach ("Fördern und Fordern") for the long-term unemployed will be finally readjusted towards supportive policy measures such as training. The reform of the in-work benefit element should aim at supporting sustainable employment subject to social security contributions. However, to live up to its name, the citizen's income must ensure genuine social participation for those receiving the citizen's income.

[Quick Exit or Deliberate Loosening? On the Future of Contact Restrictions in the COVID-19Crisis]. / Schneller Ausstieg oder bedachte Lockerung?: Zur Zukunft von Kontaktbeschränkungen in der COVID-19-Krise.

How important is the relaxation of contact restrictions for the recovery of the German economy and what conclusions can be drawn for the appropriate level of contact restrictions in the coming months? In considering these issues, an attempt will be made to assess what significance the contact restriction measures introduced by the federal and state governments since mid-March 2020 will actually have for the current slump in economic activity in Germany. In addition, the various plausible scenarios for the spread and containment of infection are presented with different options for easing contact restrictions.