This paper addresses the question of why high unemployment rates tend to persist even after their proximate causes have … persistence versus relatively high microeconomic labor market flow numbers. We calibrate the model for East Germany and examine …

flexibility has also affected how firms adjust employment in Germany. Using a rich microeconomic dataset, we show that firms with … the key driver of the unusually small increase in German unemployment in the Great Recession. …

This paper analyzes the effects of different labor market institutions on inflation and output volatility. The eurozone …. We use a New Keynesian model with unemployment to predict the effects of different labor market institutions on … on inflation volatility, which can also be rationalized by our theoretical model. …

predictions of the model change very little, but the welfare costs of unemployment are much larger because unemployment risk is … distributed unequally across workers. As a result, optimal unemployment insurance may be higher and welfare is lower if hiring is …

state contingent inflation taxes/subsidies to smooth those rents. Hence, in the optimal Ramsey plan, inflation deviates from … zero and the optimal volatility of inflation is an increasing function of firing costs. The optimal rule should react to … employment alongside inflation. …

counteract a steep increase in unemployment. We show that short-time work can actually save jobs. However, there is an important … component appears to be completely ineffective. In a case study for Germany, we use the rich data available to combine micro …

comovement between matches, unemployment, and vacancies in dynamic labor market models: either by assuming a standard Cobb …