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Germany, as most other European countries, has been plagued by a persistently high level of long-term unemployment … since the early 1980's. In contrast, long-term unemployment is much less of a problem in the United States. One potential … reason for the different structure of unemployment relates to institutional differences in unemployment compensation systems …
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We analyze the dramatic decline of the employment share of unskilled labor in the West German economy, in particular its relation to the relatively rigid earnings structure. We find that the substitution elasticity between unskilled and skilled labor is rather low in most sectors of the economy....
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Using information on desired and actual hours of work, we formulate a discrete choice model of constrained labor supply. Using the German Socio-Economic Panel and the microsimulation model STSM, we find that hours and participation elasticities are substantially smaller than those in the...
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Although explanations of the persistence of high unemployment in Germany, in particular long-term unemployment, have …, these factors are analyzed based on a microeconometric model of individual transitions from unemployment into employment and … dependence" arising from causal factors and "sorting" effects due to unobserved heterogeneity in the unemployment pool. I also …
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between employment, unemployment and non-participation in the labour force at the individual level are derived from panel data …-state or 'equilibrium' unemployment rates for various groups of the labour force. It is shown that these differ greatly between …
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for state dependence effects in male unemployment behaviour. Estimation of the model is based on the marginal likelihood … approach. In the model an individual's unemployment probability at a given point in time within the period 1985 - 1989 depends … on his labour force status in the previous period and on the cumulated duration of past unemployment. Controlling for …
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