general equilibrium model, this paper shows that skilled insiders in the USA enjoy higher rents and increase the skilled wage … training and education costs in the USA for unskilled employees and unemployed. In Germany, the lower skill wage mark-up leads …The US labour market is characterized by a high skill wage mark-up and low unemployment, while the German labour market …

investments nevertheless. When outsiders have an effective entry threat, insiders are forced to accept higher employment of … outsiders and share the reduced rents with them. However, full employment is not necessarily reached and in any case investments …

losing self-employment is an even more harmful life event than losing dependent employment. Monetary and non-monetary reasons … seem to account for the difference between the two types of work. Moreover, it originates from the process of losing self-employment … and the consequences of unemployment rather than from advantages of self-employment. …