The analysis is about the compulsory German unemployment insurance system (GUIS). It is known that GUIS did nothing to prevent the continuous rise of the rate of unemployment since the 1970s. The empirical literature about GUIS indicates that the few endeavours to increase incentives to work...

This paper shows that the German labor market is more volatile than the US labor market. Specifically, the volatility of the cyclical component of several labor market variables (e.g., the job-finding rate, labor market tightness, and job vacancies) divided by the volatility of labor...

We build a RBC endogenous separation matching model and introduce efficiency wages along the lines of Akerlof (1982). While the standard endogenous separation matching model reveals shortcomings in explaining correlations and volatilities jointly, this approach performs reasonably well along...