Using longitudinal information on labour market participation we analyse the dynamics of unemployment in Europe. We focus in particular on individuals with a poor attachment to the labour market. The countries under scrutiny are clustered into four ideal-typical welfare regimes. Overall, a...

In a previous paper in this journal (Headey et al., 2000) a comparison was made between three so-called ‘best cases’ of welfare regime types, the ‘Liberal’ US, ‘the ‘Corporatist’ Germany and the ‘Social-Democratic’ Netherlands. That paper was based on the ten-year datasets...

Financial integration is the process that has been occurring in the European Union for many years and that intensified after adoption of the common currency in 1999. This paper discusses the theoretical framework of financial integration, particularly the definition, typology, benefits and...

This paper proposes a more general definition of loss avoidance, relates it to fairness and applies it to the labor market. By influencing judgments about what is a fair wage readjustment, it can lead to coordination failures, generating downward nominal wage rigidity (DNWR) and disinflation...

Recent empirical evidence suggests that nominal wages in the U.S. are downwardly rigid. This paper studies optimal monetary policy in a labor search and matching framework under the presence of Downward Nominal Wage Rigidity (DNWR). The study shows that when nominal wages are downwardly rigid,...

We use data on enterprise level from a survey of medium sized and big companies to test for downward nominal wage rigidity in Poland. We find relatively weak support for downward nominal wage rigidity when average total compensation in the enterprise is taken into account. However, since this...

This paper analyzes the effects of monetary policy shock when there is a non-negative constraint on the nominal interest rate. I employ two algorithms: the piecewise linear solution and Holden and Paetz's (2012) algolithm (the HP algorithm). I apply these methods to a dynamic stochastic general...

This note analyses the interaction between nominal wage stickiness and costly employment adjustment in a small closed-economy New Keynesian model with simple rule-based or optimal monetary policy. The results show (1) the costs of nominal and real rigidity to depend on the policy regime, (2)...

Abstract: This note investigates the interaction between nominal and real labour market rigidities. It shows nominal wage rigidity to have little effect on the welfare loss from labour adjustment costs under a labour supply shock. This implies that the second best effect of nominal price...

The article shows that reservations in Europe against Turkey's future membership are really groundless. A Muslim nation already was a member of the EU: Algeria. When Algeria was still a colony, it joined the EU (then: European Economic Community) on January 1st 1958 as a French "Departement",...