We extend the standard quality-ladder model with heterogeneous workers by including efficiency wages and unions. We find that higher union bargaining power leads to a negative relationship between growth and unemployment. An increase in the supply of human capital, however, on the one hand...

The labour-market policy-mix in Germany is increasingly being decided on a regional level. This requires additional knowledge about the regional development which (disaggregated) national forecasts cannot provide. Therefore, we separately forecast employment for the 176 German labour- market...