The Great Recession that began in 2008–2009 dramatically increased youth unemployment. But did it have long-lasting, adverse effects on the careers of youths? Are cohorts that graduate during a recession doomed to fall permanently behind those that graduate at other times? Are the impacts...

We present a generalization of the standard random-search model of unemployment in which firms hire multiple workers and in which the hiring process is time-consuming as well as costly. We follow Stole and Zwiebel (1996a,b) and assume that wages are determined by continuous bargaining between...

Deutschland ist auf einem guten Weg, seine Neuverschuldung schrittweise abzubauen. Das DIW erwartet bis 2012 eine Reduktion des Defizits auf ungefähr 23 Milliarden Euro. Dies gelingt vor allem, weil die Steuereinnahmen 2011 und 2012 sprudeln und die Sozialausgaben deutlich geringer ausfallen...

Based on the counting of Help-wanted advertisements in print newspapers, we build national vacancy indexes and vacancy rates for Colombia for the period 1976 - 2012. The result is the first dataset capturing the evolution of vacancies for Colombia and the first one covering such a long period...

This paper examines the role of fiscal policies in the dynamics of the labor market. Through the lenses of Okun's Law, we assess how fiscal policy instruments as well as fiscal consolidation and expansion episodes affect labor market outcomes. Using a panel of 34 OECD countries over the period...

The fiscal consolidation efforts of Spain, Italy, and Portugal from 2010 to 2014 did not achieve their goal of reducing the debt-to-GDP ratio in any of the three countries. This Economic Bulletin examines why the spending cuts and tax increases, at times drastic, were unsuccessful and...

Die von Spanien, Italien und Portugal zwischen 2010 und 2014 unternommenen fiskalischen Konsolidierungsanstrengungen haben entgegen ihrem Ziel nicht zu einer Reduzierung der Staatsschuldenquote dieser drei Länder geführt. Dieser Wochenbericht untersucht, warum die teilweise drastischen...

This paper uses an extended version of 'FiMod-A DSGE Model for Fiscal Policy Simulations' (Stähler and Thomas Econ Model 29:239-261, 2012) with endogenous job destruction decisions by private firms to analyze the effects of several currently discussed labor market reforms on the Spanish...

Scarce empirical evidence exists for Germany regarding the cyclical aspects of worker reallocation. Furthermore, it is assumed that the cyclical influence on transition rates is the same for all demographic groups. However, one can expect that each subgroup is differentially influenced by the...

We analyze unemployment dynamics for Germany on a regional basis by means of an approximate factor model. We first estimate the number of factors corresponding to the number of cycles. At least for the pre-'Hartz' reform data we find strong evidence for more than just one dynamic labor market...