Although the standard work week is longer in East than in West Germany, there is a higher incidence and average amount of unpaid overtime worked in the new states. We try to explain the striking differences in unpaid overtime by analyzing the labor supply side. We focus on the investment...

In this paper we analyze the sources of German unemployment within a structural vector error correction model (SVECM) framework. For this purpose, we propose a method to estimate an exactly identified Subset SVECM, which is a SVECM with short run parameter restrictions. A cointegration analysis...