This paper considers a real business cycle model with labor search frictions where two types of incentive pay are explicitly introduced following the insights from the micro literature on performance pay (e.g. Lazear, 1986). While in both schemes workers and firms negotiate ahead of time-t...

There has been much informal speculation on how changes in economic circumstances contribute to partnership dissolution; however there has been little empirical work testing these speculations. This paper aims to shed light on how micro level factors such as receiving a financial windfall and...

Area 5 focuses on the regional and local dimensions of the new European path to socio-ecological transition. Its central assumption is that any strategy developed to enhance a socio-ecological transition is unlikely to yield strong results unless the resources of regional and local actors are...

In a comparative framework, the paper uses a recently observed shift away from cash transfers and towards the provision of rehabilitation services to identify barriers to welfare policy reform. The analysis relies on the assumption that some European welfare regimes have a similar initial...

Fears of increasing inequality play a dominant role in current debates on how globalization is affecting our economies. After a brief review of recent trends in wage inequality, this policy paper presents new insights on the dynamic effect of trade liberalization on wage inequality. In the...

Despite significant measures to reinforce the EMU’s institutional set-up, there is widespread consensus that more needs to be done in order to better deal with cyclical and structural heterogeneity in the EU. Market-based adjustment mechanisms are necessary but not sufficient to advance...

WP 201 takes a historical perspective in analysing past systemic social-ecological transition processes. The research paper (MS 27) emerging from task 201.2 explores two major energy transitions of the past: the transition to the use of fossil fuels (e.g. starting with coal in the UK in the 17th...

Fears of rising wage inequality and job loss loom large in current debates on free trade. Surprisingly, however, there exists little academic research on how to compensate those who lose from free trade. This policy paper reviews the existing theoretical literature on trade and compensation, and...

This milestone provides a broad overview of model development under Work Package 205 of the WWWforEurope project. It describes briefly the challenge of modelling combined economic, ecological and financial systems and sets out a series of objectives for modelling the socio-economic transition...

Based on questionnaires conducted among PES organizations as well as Pacts and LEIs (Pacts/LEIs) in 40 cities of 12 EU member states and 2 non-EU member states – we take stock of the preconditions for conducting local labour market policies in an urban context in Europe and analyse the...