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The paper extends the literature on the political economy of labor market institutions by developing a framework in which owners of capital can benefit from both greater labor market flexibility and better rule of law. Their choice of location of manufacturing centres can, therefore, by...
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From the early 1990s until 2005 the unemployment rate rose in Germany from 7.3% to 11.7%. While the unemployment rate … market reform (Hartz IV) was implemented in 2005 with the intent to cut the unemployment rate. On the other hand, the … that the "Hartz IV-Reform" and the German productivity contributes positively to the decline of unemployment, whereas the …
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The age at which children leave the parental home differs considerably across countries. We present a theoretical model predicting that higher job security of parents and lower job security of children may delay emancipation. We then provide aggregate evidence which supports this hypothesis for...
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