ABSTRACT
The German economy has been characterized as ‘overregulated’, a feature which is claimed to have damaging effects on the dynamics of the economy in general and of the labor market in particular. Although the claims rest on an argument about the dynamics of the labor market, very little analysis of labor market flows has been undertaken. Instead high, persisting unemployment has been used as evidence to support arguments of a sclerotic German labor market. Consequently policy proposals for the deregulation of the German economy have been advocated.
