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show that the marginal income risk effect on wages is always positive whereas the marginal unemployment risk effect … crucially depends on the income risk. The interaction effect between both risk measures is negative. Using administrative panel …We examine whether income and unemployment risks are compensated by individual wages. Using a portfolio approach we …
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The paper reviews adjustment dynamics in the EMU on the basis of estimated DSGE models for four large EA Member States (DE, FR, IT, ES). We compare the response of the four countries to identical shocks and find a particularly strong response of employment and wages in ES, a high sensitivity of...
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