covering the development on an aggregate level. Estimations to shed light on the relation between unemployment and labour force … years. However, the impact of this development on unemployment is rather limited. …

Using German data this study applies an unobserved-components approach to disentangle the unemployment rate into a … trend component of unemployment, which triggers permanent reactions of the workers, is likely connected to a structural … effect. By splitting up the participation effect of changes in the unemployment rate our analysis differs profoundly from …