The paper estimates how wages respond to changes in regional unemployment using detailed Swedish micro data. The study … changes in regional unemployment. Accounting for the fluctuations in composition of the employees is important for the … estimated elasticity of wages. Wage adjustments are larger for employees with high unemployment risk and for new hires entering …

According to a widespread view, Germany's unemployment crisis is caused by rigid labour markets, low profitability and … Germany's unemployment rate since 1989, first because no distinction is drawn between the situation in the Eastern part of … negotiations. The unification shock to the East added at least 2.5 percentage points to Germany's overall unemployment rate, as …