ABSTRACT
Globalization processes such as increased internationalization, deregulation and liberalization (Mills and Blossfeld 2005) have had a strong impact on the German labor market and economy. Rising global interconnectedness has noticeably changed the demands on enterprises and markets (Castells 2000), putting the concept of market regulation in Germany (Mayer 1997; Soskice 1999) more and more under pressure. Unemployment rates have risen dramatically in the last two decades, and employers and enterprises complain about the rigidities of the comparatively highly regulated employment system in Germany (strong unions and workers' councils, an active role of the state, etc.).
