Two signaling games of monetary policy are considered: game one examines the effect of hysteresis on the labor market on the results of the repeated monetary policy game. Disciplinary effects of reputation disappear in presence of hysteresis. The second game compares weifare effects of monetary...

This paper evaluates the strength of information flow from employed past coworkers on the re-employment duration of displaced workers due to plant closures in Austria. Using the Austrian Social Security Database (a matched employer-employee database) we exploit the panel structure of 36 years of...

When workers send applications to vacancies they create a bipartite network. Coordination frictions arise if workers and firms only observe their own links. We show that those frictions and the wage mechanism are in general not independent. Only wage mechanisms that allow for ex post competition...

Social networks are an important channel of information transmission in the labor market. In this paper investigate how displaced workers searching for new jobs benefit from information provided by their former coworkers. In line with the theoretical and empirical literature we find that the...

This paper investigates the role that pre-immigration skills play in immigrants job-finding processes in Germany. We first show theoretically that the job-finding rate for the high-skilled varies depending on their search strategy: if they are prepared to look for both unskilled as well as...

This paper develops a labour market matching model with heterogeneous firms, on-thejob search and referrals. Social capital is endogenous, so that better connected workers bargain higher wages for a given level of productivity. This is a positive effect of referrals on reservation wages. At the...

This paper quantifies the impact of the Hartz reforms on matching efficiency, using monthly SOEP gross worker flows (1983-2009). We show that, until the early 2000s, close to 60% of changes in the unemployment rate are due to changes in the inflow rate (job separation). On the contrary, since...