This paper constructs a theory of the coexistence of fixed-term and permanent employment contracts in an environment with ex ante identical workers and employers. Workers under fixed-term contracts can be dismissed at no cost while permanent employees enjoy labor protection. In a labor market...

How does technical progress affect long-term unemployment in a small open economy? This relationship is evaluated in an open neoclassical growth model that is extended by a Pissarides-style labor market matching approach. In the general equilibrium model, the labor market of the three factor...

How can long-term unemployment be reduced by policy measures of the government? In this paper a growth-matching-model is developed, in which the unemployment pool consists of heterogeneous unemployed workers, short-term and long-term unemployed, and with an endogenous skill-depreciation of the...

How does technical progress affect long-term unemployment? The relationship between long-term unemployment and the rate of growth attributable to technical progress is evaluated in a growth-matching-model with heterogeneous jobless workers and with endogenously determined long-term unemployed...

This paper provides a labour supply explanation to the observation that in Germany employment changes are asymmetric during the business cycle. Employment increases are slower, because the reservation wage of workers increases in times of job uncertainty. Workers are afraid in those periods of...

Viele Erklärungsmuster der Arbeitslosigkeit sind unbefriedigend, weil das Verhalten der Arbeitsnachfrageseite in Bezug auf ihre Motivation der Arbeitsplatzschaffung und ihrer hierarchisch- organisierten Struktur unzureichend in die Betrachtungsweise einbezogen werden, wodurch die Unternehmung...

In a New Keynesian DSGE model with labor market frictions and liquidity-constrained consumers aggregate unemployment is likely to increase due to a non-persistent government spending shock. Furthermore, the group of asset-holding households reacts very differently from the group of...

Der Mindestlohn wird durch die neue Bundesregierung abermals in die Diskussion gebracht. Kritiker befürchten durch diese Maßnahme eine Zunahme der Abeitslosigkeit aufgrund einer größeren Lohnstarrheit und einer Abdrängung einer größeren Zahl von Erwerbsfähigen aus dem Arbeitsmarkt in die...

In der Juliausgabe des WIRTSCHAFTSDIENST veröffentlichten wir einen Aufsatz von Professor Peter Kalmbach: „Gesetzlicher Mindestlohn – von Befürwortern und Gegnern überschätzt“. Dazu eine Replik von Professor Hickel und eine Erwiderung von Professor Kalmbach.

This paper presents a general-equilibrium model of endogenous skilled-biased technological change and matching unemployment in a disaggregated economy. We simultaneously endogenise both the direction and pace of technological change as well as the unemployment rates. We show that an increase in...