This essay first sketches some descriptive material, setting the stage and demonstrating the highly differentiated statistical landscape of various measures for youth unemployment in Europe compared to India and in particular to Germany. Second, it provides a simple but powerful model for the...

The EU’s largest economy, Germany, has managed to find an effective and unique combination of flexibility and rigidity in its labor market. Institutions that typically characterize rigid labor markets are effectively balanced by flexibility instruments. Important developments since 2000...