In a number of European economies youth unemployment has increased again to unexpected and unwanted levels. It has become one of the pressing labor market problems that many countries are currently facing. This special issue involves a collection of current research and new findings. The...

We present a model that integrates the discrete working time choice of heterogenous households into a general equilibrium setting where wages are determined by sectoral bargaining between firms and trade unions. The model is calibrated to German micro and macro data. We then use it to analyse a...