This paper studies the conditional patterns of unemployment dynamics in Germany. We employ a structural VAR model and …

propose a multi-worker plant search and matching model with decreasing returns to scale and financial frictions. As a result …

protection is granted. I do not find evidence for a positive effect of dismissal protection on matching quality. …

the matching process. We show that both modes of wage determination coexist in the German labor market, with about two …

theory to a flexible unobserved components model: we disentangle permanent and transitory components of matching efficiency … macroeconomic outcome of the reforms. For that purpose, we construct a new empirical model that links equilibrium unemployment … and separation rate as well as unemployment and vacancies. Cointegration and identification are addressed. We find that …

unemployment is very close to zero when unemployment is above its long term average but large and highly significant when below. We … unemployment. It cannot however match the persistence of the German unemployment rate. We conjecture that extending the model to …

labor supply elasticity. For this purpose, we extend the standard labor market matching model to allow for endogenous … participation. A model that is calibrated to replicate the variability of unemployment and participation, and the negative … correlation of unemployment and GDP, implies an aggregate labor supply elasticity along the extensive margin of around 0.3 for men …