This paper indicates that East Germany’s unemployment originates primarily in the labor market, caused by the fast wage …

We distinguish and assess three fundamental views of the labor market regarding the movements in unemployment: (i) the … that all the short-run ‡uctuations automatically turn into long-run changes in the unemployment rate. We assert the …

driver of the unusually small increase in German unemployment in the Great Recession. One possible explanation is that firms …

This paper addresses the question of why prolonged regional unemployment differentials tend to persist even after their … proximate causes have been reversed (e.g., after wages in the high-unemployment regions have fallen relative to those in the low-unemployment …-productivity "trap," through the attrition of skills and work habits. We develop and calibrate a model along these lines for East Germany …

1980s. Based on the timing of observed fluctuations in interest rates, inflation, and productivity, it appears that the …

setting due to labor cost and straitjacket effects. As firms in Germany are allowed to choose their wage formation regime, we … test these two hypotheses with representative establishment data for West Germany. We find that establishments with …

negative relationship between labor’s share and lagged productivity growth and inflation. I also evaluate the role of labor …

cycle volatility and matching the lack of a long-run relationship between vacancy creation and inflation. With regard to …