This paper deals with the estimation of employment equations for Germany, which are to be used for forecasting and … studies for West Germany and Germany, respectively. The authors find that the elasticity of employment with respect to output … is robustly estimated and can therefore be restricted to one. The elasticity of employment with respect to the real wage …

public sector units in 1991. Since then, per capita output has increased significantly, while the overall unemployment rate … unemployment remains stubbornly high, an overwhelming proportion of the labor force continues to work in the informal sector, and …