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East German unemployment : the myth of the irrelevant labor market

Merkl, Christian (contributor); … - 2008

This paper indicates that East Germany's unemployment originates primarily in the labor market, caused by the fast wage … traps. -- Unemployment ; labor market trap ; East Germany …

Persistent link: https://www.econbiz.de/10003732134

Quadratic labor adjustment costs, business cycle dynamics and optimal monetary policy

Lechthaler, Wolfgang; Snower, Dennis J. - 2011 - revised January 2011

We build quadratic labor adjustment costs into an otherwise standard New-Keynesian model of the business cycle and show that this increases output persistence in a similar vein as other models of labor market frictions. Furthermore, it is demonstrated that quadratic labor adjustment costs imply...

Persistent link: https://www.econbiz.de/10011452084

A theory of wage adjustment under loss aversion

Ahrens, Steffen; Pirschel, Inske; Snower, Dennis J. - 2014

We present a new theory of wage adjustment, based on worker loss aversion. In line with prospect theory, the workers' perceived utility losses from wage decreases are weighted more heavily than the perceived utility gains from wage increases of equal magnitude. Wage changes are evaluated...

Persistent link: https://www.econbiz.de/10010440552

An incentive theory of matching

Brown, Alessio J. G.; Merkl, Christian; Snower, Dennis J. - 2009

empirical regularities that the conventional matching model cannot. -- Matching ; incentives ; adjustment costs ; unemployment …

Persistent link: https://www.econbiz.de/10003827234

Escaping the unemployment trap : the case of East Germany

Merkl, Christian (contributor); … - 2008 - Rev. version

This paper addresses the question of why prolonged regional unemployment differentials tend to persist even after their … proximate causes have been reversed (e.g., after wages in the highunemployment regions have fallen relative to those in the low-unemployment …

Persistent link: https://www.econbiz.de/10003775079

Incentives and complementarities of flexicurity

Brown, Alessio J. G.; Snower, Dennis J. - 2009

renowned Danish miracle by evaluating their unemployment and inequality effects and their complementarities. We develop a … full Danish flexicurity set of policies (low employment protection, high unemployment benefits and workfare). Our results … show that implementing the Danish flexicurity concept in Germany would reduce unemployment and earnings inequality …

Persistent link: https://www.econbiz.de/10003850634

Phillips Curves and unemployment dynamics : a critique and a holistic perspective

Karanassou, Marika (contributor); Sala, Hector (contributor) - 2008

The conventional wisdom that inflation and unemployment are unrelated in the long-run implies the compartmentalisation … of macroeconomics. While one branch of the literature models inflation dynamics and estimates the unemployment rate … compatible with inflation stability, another one determines the real economic factors that drive the natural rate of unemployment …

Persistent link: https://www.econbiz.de/10003736446

Escaping the unemployment trap : the case of East Germany

Merkl, Christian (contributor); … - 2007

Persistent link: https://www.econbiz.de/10003414301

Quadratic labor adjustment costs and the New-Keynesian model

Lechthaler, Wolfgang (contributor); … - 2008

We build quadratic labor adjustment costs into an otherwise standard New-Keynesian model of the business cycle and show that this is sufficient to increase both, output and inflation persistence. -- Monetary persistence ; labor adjustment costs

Persistent link: https://www.econbiz.de/10003757577

The minimum wage from a two-sided perspective

Brown, Alessio J. G.; Merkl, Christian; Snower, Dennis J. - 2014

This paper sheds new light on the effects of the minimum wage on employment from a two-sided theoretical perspective, in which firms' job offer and workers' job acceptance decisions are disentangled. Minimum wages reduce job offer incentives and increase job acceptance incentives. We show that...

Persistent link: https://www.econbiz.de/10010238837