This paper provides a labour supply explanation to the observation that in Germany employment changes are asymmetric during the business cycle. Employment increases are slower, because the reservation wage of workers increases in times of job uncertainty. Workers are afraid in those periods of...

The paper deals with causes and consequences of constraints on the adjustment of employment. First, a model of a delayed adjustment of employment and capital is worked out. This model is augmented with linear constraints on the adjustment speed of labour supply and demand. The aggregate model is...

Globalization has entered a new stage, with new and varying constellations of winners and losers and thus, calls for a new policy paradigm. In contrast to the traditional way of thinking - the welfare state redistributes purchasing power to the disadvantaged to support them in the event of...