Mobile workers involve flows of labor and human capital and contribute to a more efficient allocation of resources. However, migration also changes relative wages, alters the distribution of skills and affects equality in the receiving society. The paper suggests that skilled immigration...

Even though the share of workers retiring prematurely is growing, the average age of the labor force is rising because the younger age groups are contracting and the length of time they spend in education is increasing. And yet the German higher education system is relatively unproductive. While...

Much work awaits the new U.S. president. The U.S. has been financially depletedby the Iraq war, economic programs and necessary financial system restructuringcosts. The current financial crisis requires a government that takes an active hand ineconomic matters; at the same time, however, the...

With Germany's banking sector still suffering from the effects of the financial crisis, public discussion of plans to place toxic assets in one or more bad banks has gained steam in recent weeks. The following paper presents a bad bank plan from the German Institute for Economic Research. The...

To date, the Great Recession has only had a mild impact on the German labor market. In view of the uncertainties surrounding future economic growth, the low utilization of the workforce in firms, and the prevalence of working hour reductions, many observers are anticipating a dramatic rise in...

The free movement of workers within the European Union does not place a burden on labor markets or social services. This is the conclusion of a recent study on the development and effects of east-to-west migration in the wake of EU enlargement in 2004 and 2007. In this light, Germany's...