This chapter reviews the literature on employment and labor law. The goal of the review is tounderstand why every jurisdiction in the world has extensive employment law, particularlyemployment protection law, while most economic analysis of the law suggests that lessemployment protection would...

This paper studies the impact of an increase in the enforcement of labor regulations onunemployment and inequality, using city level data from Brazil. We find that stricterenforcement (affecting the payment of mandated benefits to formal workers) leads to: higherunemployment, less income...

This paper describes psychological contracts and how they are created. Even though the phenomenon of the psychological contract can be observed in a variety of relationships, this paper solely discusses psychological contracts in business settings. The paper discusses in particular how...

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This paper analyses the effects of discretionary fiscal policy by presenting new empiricalevidence for Germany within a structural vector autoregression (SVAR) framework. FollowingBlanchard and Perotti (2002), the SVAR model is identified by applying institutionalinformation. We find no...

We investigate to what extent convergence in production levels per worker has beenachieved in Germany since unification. To this end, we model the distributionof GDP per employee across German districts using two-component normal mixtures.While in the first year after unification, the two...

With a population of 82.5 million, the German market is the largest in the EU and therefore of specialinterest for the trade partners. Despite an unsatisfying economic development in the last years (lowestGDP growth in the EU and rising unemployment, see Table 9 in the annex) Germany is still a...

Collective bargaining in Germany takes place either at the industry level or at the firm level; collective bargaining coverage is much higher than union density; and not all employees in a covered firm are necessarily covered. This institutional setup suggests to explicitly distinguish union...