opening of new institutions of tertiary education across Germany in the 1980s and 1990s. The new college substantially …

, recessions generate long-lasting hysteresis: persistent decreases in the employment-to-population ratio and earnings per capita …. Changes in the composition of workers explain less than half of local hysteresis. We further show that finite sample bias in … hysteresis in employment rates. …

proximity of other labor markets, a local shock that increases unemployment may not lead to lower pay rates if employers fear … are confirmed by means of an estimation of wage curves with data for 327 regions of western Germany over the period 1990-1997 …

, recessions generate long-lasting hysteresis: persistent decreases in the employment-to-population ratio and earnings per capita …. Changes in the composition of workers explain less than half of local hysteresis. We further show that finite sample bias in … hysteresis in employment rates …

The paper illustrates the effect of a permanent demand-side shock in the perturbed regions and the associated spillover …