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The aim of this paper is to analyze and estimate salient characteristics of unemployment dynamics. Movements in unemployment are viewed as "chain reactions" of responses to labor market shocks, working their way through systems of interacting lagged adjustment processes. In the context of...
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This paper explicitly differentiates between unemployment and inactivity, by defining inactivity as a state in which individuals do not search for jobs when non-employed. Facing changes in the value of inactivity, individuals transit through three labor market states. In steady-state, we hence...
Persistent link: https://www.econbiz.de/10001650586
We use longitudinal individual wage and employment data in France and the United States to investigate the effect of changes in the real minimum wage rate on an individual's employment status. We focus on workers employed at wages close enough to the minimum in a reference year as to be illegal...
Persistent link: https://www.econbiz.de/10001528554
We develop a simple search equilibrium model of workplace training and education based on two features. First, investment in education improves job-related learning skills and reduces training costs burdened by firms. Second, firms with vacant skilled job slots can choose between recruitment...
Persistent link: https://www.econbiz.de/10001471799
This paper investigates whether and in what sense the west German wage structure has been 'rigid' in the 1990s. To test the hypothesis that a rigid wage structure has been responsible for rising low-skilled unemployment, I propose a methodology which makes less restrictive identifying...
Persistent link: https://www.econbiz.de/10001618002
The paper employs generational accounting to analyze the intertemporal fiscal impact of immigration to Germany … externality on the incumbent population due to immigration is found positive and large. Further, immigration probably reduces … immigration policy could raise the average migrant surplus to the intertemporal government budget, it cannot restore fiscal …
Persistent link: https://www.econbiz.de/10001613833
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