Germany experienced an even deeper fall in GDP in the Great Recession than the United States, with little employment …, contributed to an employment shortfall equivalent to 40 percent of the missing employment decline in the recession. Another 20 …

, unemployment and capital accumulation. First, we recover the partial equilibrium over-employment phenomenon put to the fore by …. Further, with heterogeneous labour, higher relative bargaining power for some groups leads quite generally to over-employment … of workers is actually detrimental to employment when labour is considered as an homogeneous input. Finally, the hold …

little employment protection and low unemployment benefits, while the European model (generous benefits and higher duration … of jobs) favours specific human capital investments. This conjecture provides, among other things, a rationale for … differences in labour mobility and reallocation costs, which are typically ignored in American ‘International Trade’ textbooks yet …

Labour market frictions are not the only possible source of high unemployment. Credit market imperfections, driven by … tractable macroeconomic model, we treat credit and labour market imperfections in a symmetrical way. Accordingly, we introduce … frictions, in the spirit of Diamond (1990). These imperfections mirror job search frictions in the labour market. We study the …

unemployment duration spells, relatively large wage penalties when changing jobs and higher likelihood of leaving activity for … and persistent unemployment compared to Estonia during the period of EU enlargement. Traditional labour market … institutions (wage rigidity and employment protection) increased, but to a much lesser extent, the unemployment gap. …