security system in an economy with unemployment caused by trade unions. Using a simple two-period overlapping generations …

percent). Thus, the incentives to work are strongly impaired. The downward adjustment of wages for low skilled workers was … impeded by the system of social assistance. As a consequence, unemployment increased. …

reservation wages, using data from the German Socio-Economic Panel. The longitudinal aspect of the dataset provides an interesting … perspective on the dynamics of reservation wages and their correlations with accepted wage offers for workers who make the … transition from unemployment to employment. The findings have important policy implications as well, since they shed some light …