Using annual data for 18 OECD countries over the period 1980-2004, we investigate howlabour and financial factors interact to determine unemployment by estimating a dynamicpanel model using the system generalized method of moments (GMM). We show that theimpact of financial variables depends...

The extent of low-wage work in Germany is hotly debated. In international comparisons fromthe mid-90s, Germany is often classified as a country with a low wage dispersion. Comparedto the USA and UK, Germany has a relatively equal income structure and a small proportionof low-paid workers (OECD 1996;...