An analysis of European employment deficits using employment-population ratios shows that there exist unexhausted employment potentials in many EU countries, in particular for older employees, but also for women and in the service sector. If the EU-15 were to match the U.S. employment-population...

Equilibrium search theory suggests that the wage distribution in a cross section of workers is closely related to labor market transitions and associated wage changes. Accordingly, job-to-job transitions are central in explaining the wage distribution. This paper usese the IAB employment...