Since the early 1970s, it was argued that shifts from relatively smaller to larger youth cohorts in the labor force raise the unemploy- ment rate. In contrast, Shimer (2001) comes to a contrary conclusion using US state level data. I provide a theoretical framework for local labor markets that...

We compare real wage differences between centralized and peripheral areas and highly centralized and peripheral areas using vast information of German administrative data that contains more than 2.8 Million individuals and 660,000 firms. We provide substantial empirical evidence that most of the...

Since the early 1970s, it was argued that shifts from relatively smaller to larger youth cohorts in the labor force raise the unemployment rate. In contrast, using US state-level data, two studies come to a contrary conclusion. I provide a theoretical framework for local labor markets that...

In Germany and many other countries, students are tracked into various secondary school types. This paper studies whether parents or teachers assess students potential educational performance more adequately. Educational attainment is measured by grade retention rates. We take advantage of a...

Der Autor untersucht den Zusammenhang zwischen Arbeitsmarktinstitutionen und Arbeitslosigkeit für 20 Industrieländer. Es wird geprüft, ob es einen nicht-linearen Zusammenhang zwischen Arbeitsmarktinstitutionen und Arbeitslosigkeit gibt. Dabei werden sowohl länderspezifische Einzelgleichungen...

This paper examines the effects of the distribution of unemployment by age on the level of unemployment. We provide an extension of the standard equilibrium unemployment model that allows for age dependent job finding probabilities and quit rates. In the empirical part of the paper we apply a...

This paper examines the effects of the distribution of unemployment by duration on the level of unemployment. It explores one central as- sumption that is observed empirically: when the share of long-term (short-term) unemployed increases, the unemployment rate increases (decreases). By...

The social costs of unemployment, in terms of unemployment's impact on European citizens' life satisfaction, relate strongly to unemployment duration. At any level of general joblessness, reducing long-term unemployment is more important than reducing the number of people unemployed at any point...

Previous literature has identified considerable non-pecuniary costs to macroeconomic fluctuation and uncertainty. The present paper investigates whether and to what extent labor market institutions can mitigate those costs. We study how life satisfaction of European citizens is affected by...

This paper analyzes how the aging labor force aþects the unemployment rate at the regional level in Germany. A theoretical model of equilibrium unemployment with spatial labor market interactions is used to study the eþects of age-related changes in job creation and job destruction. Using data...