The creation of jobs in the low-pay sector is considered to be an approach to reduce unemployment, especially with … evaluate the effects of an increasing low-wage sector on unemployment, the concept of the non-accelerating inflation rate of … unemployment (NAIRU) is used. In a first step, the unobservable, exogenous NAIRU is estimated for Germany in a state space setting …

/price-setting theory, this increase should reduce structural unemployment, because labour market flexibility increases and labour costs … impact of the relationship between the extensiveness of the low-pay sector and structural unemployment. Data from Germany … 1991 to 2008, indicate a positive impact of the growing low-wage sector on structural unemployment. Moreover, some …

This paper assesses whether productivity and unemployment have a stable long-run relationship. We explore a panel of 19 … that unemployment and productivity are non-stationary in levels and in many individual cases these series are cointegrated … unemployment to productivity. …