West Germany's Employment Promotion Act of 1985 facilitated the use of fixed-term contracts and increased the number of dismissals above which the employer is required to establish a "social plan" (involving severance payments). I assess the effect of this reduction in "firing costs" on...

Following the unification of Germany in 1990, eastern wages and unemployment both rose rapidly. I demonstrate that rising wages reduced eastern emigration greatly, while rising unemployment had little effect. This reflects the behavior of the young, who are very sensitive to source region wages,...