This paper addresses the question of why prolonged regional unemployment differentials tend to persist even after their proximate causes have been reversed (e.g., after wages in the highunemployment regions have fallen relative to those in the low-unemployment regions). We suggest that the...

This paper describes the practical implementation of hiring vouchers in Germany (Kiel Working Paper 1302 "Comparing the Effectiveness of Employment Subsidies" by Alessio Brown, Christian Merkl and Dennis Snower). According to our proposal employers receive vouchers for hiring longterm...