The creation of jobs in the low-pay sector is considered to be an approach to reduce unemployment, especially with … evaluate the effects of an increasing low-wage sector on unemployment, the concept of the non-accelerating inflation rate of … unemployment (NAIRU) is used. In a first step, the unobservable, exogenous NAIRU is estimated for Germany in a state space setting …

The reduction of the high mass unemployment is on top of the political agenda in various countries. Especially low …-skilled workers with low wages suffer from this mass unemployment. Therefore, we propose a basic income scheme/low wage subsidy scheme …