Showing 1 - 10 of 42
This paper indicates that East Germany's unemployment originates primarily in the labor market, caused by the fast wage adjustment after German reunification. We model the resulting labor market traps in a search and matching framework, show that they are difficult to overcome, and provide...
Persistent link: https://www.econbiz.de/10003732134
We build quadratic labor adjustment costs into an otherwise standard New-Keynesian model of the business cycle and show that this is sufficient to increase both, output and inflation persistence. -- Monetary persistence ; labor adjustment costs
Persistent link: https://www.econbiz.de/10003757577
This paper addresses the question of why prolonged regional unemployment differentials tend to persist even after their proximate causes have been reversed (e.g., after wages in the highunemployment regions have fallen relative to those in the low-unemployment regions). We suggest that the...
Persistent link: https://www.econbiz.de/10003775079
A growing body of empirical evidence shows that there exists a long-run positive tradeoff between inflation and real macroeconomic activity. Within a New Keynesian framewok, we examine how increasing returns generate a positive long-run relation between inflation and output.
Persistent link: https://www.econbiz.de/10003320766
The East German labor market has hardly made any progress since German reunification, despite massive migration flows and support from the West. We argue that East Germany is in trouble precisely because of the support it has received. This paper explores the phenomenon of "the caring hand that...
Persistent link: https://www.econbiz.de/10003282877
We explore the far-reaching implications of replacing current unemployment benefit (UB) systems by an unemployment accounts (UA) system. Under the UA system, employed people are required to make ongoing contributions to their UAs and the balances in these accounts are available to them during...
Persistent link: https://www.econbiz.de/10003313858
This paper analyses how and to which degree the Danish flexicurity concept and its various elements achieve the renowned Danish miracle by evaluating their unemployment and inequality effects and their complementarities. We develop a microfounded model of searching workers and firms, calibrate...
Persistent link: https://www.econbiz.de/10003850634
This paper addresses the question of why prolonged regional unemployment differentials tend to persist even after their proximate causes have been reversed (e.g., after wages in the highunemployment regions have fallen relative to those in the low-unemployment regions). We suggest that the...
Persistent link: https://www.econbiz.de/10003414301
We present a proposal for reforming unemployment assistance in Germany through the introduction of unemployment accounts (UAs). Instead of paying taxes that finance the unemployment assistance, employed people make ongoing contributions to their UAs and can make withdrawals from these accounts...
Persistent link: https://www.econbiz.de/10003481660
This paper describes the practical implementation of hiring vouchers in Germany (Kiel Working Paper 1302 "Comparing the Effectiveness of Employment Subsidies" by Alessio Brown, Christian Merkl and Dennis Snower). According to our proposal employers receive vouchers for hiring longterm...
Persistent link: https://www.econbiz.de/10003481673