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Title page 1

Contents 1

Abstract 3

Updating our understanding of the German labor market 4

Labor market change in Germany over the last two decades 7

The role of core labor market institutions 18

Some speculations about the future 24

References 28

Tables 16

Table 1. Working time preferences by selected socio-economic variables, 2021 16

Table 2. Coverage by collective bargaining and works councils, in percent of employees 19

Figures 9

Figure 1. Occupational change in Germany, 2011 to 2024 9

Figure 2. Employment change by job-wage quintile in Germany (2011-2022) 9

Figure 3. Wage dispersion and low pay in Germany over time 11

Figure 4. Nominal wage index by NACE sectors (without agriculture), 2010=100 12

Figure 5. Development of nominal wages by quintile, 2022-24, full-time workers (2022 = 100) 12

Figure 6. Unit labor costs by hours worked, 2005 = 100 13

Figure 7. Unit labor costs in Germany per hour and economic sector, 2010=100 14

Figure 8. Employment and employment types in Germany over time, in 1,000s 15

Figure 9. National minimum wages relative to median wages (full-time workers), 2010-23 20