What determines the speed of the technology diffusion? What are the consequences of diffusion? This paper presents a model to address these questions. Skilled machine-users adopt a new technology first, while unskilled users wait until machines become more reliable and accessible. The quality...

Based on a new panel dataset created in close cooperation with one of the largest temporary help agencies (THAs) in Germany, this paper presents novel evidence on key aspects of temporary agency work, a segment of the labor market that despite its growing importance remains underresearched. In...

Based on a new panel dataset created in close cooperation with one of the largest temporary help agencies (THAs) in Germany, this paper presents novel evidence on key aspects of temporary agency work, a segment of the labor market that despite its growing importance remains underresearched. In...

This paper produces first econometric estimates for Germany of the contemporanous wage gap associated with Temporary Help Service (THS) employment, as well as the long-term effects of THS work on the future earnings of workers. In addition, we present evidence showing that average male real...

Using a recently developed model which allows to separate a few well- established employment effects of product and process innovations, this paper reports new results on the relationship between innovation and employment growth in Germany. The model is tailor-made for analysing firm-level...

Do employers and workers underbid prevailing wages if there is unemployment? Do employers take advantage of workers’ underbidding by lowering wages? We hypothesize that under conditions of incomplete labor contracts wage levels may positively affect workers’ propensity to cooperate. This, in...

This paper investigates the relationship between bilateral FDI positions and cross-country business cycle correlations in the period 1982–2001. We find that countries that have comparatively intensive FDI relations also have more synchronized business cycles during 1995–2001. Before 1995, we...

Foreign-owned firms account for a significant part of output in many industrialized countries. However, compared to international trade linkages, relatively little is known about the role of foreign direct investment linkages and multinational firm behavior in the transmission of disturbances...