Summary Evidence on the role of chaotic and nonlinear dynamics on labor markets is mixed. It is unclear whether nonlinear relationships are responsible for the dynamic patterns observed in Europe during the past decades. In this paper, we test German labor market data for the null hypothesis of...

Summary We develop an agent-based macroeconomic model featuring a distinct geographical dimension and heterogeneous workers with respect to skill types. The model, which will become part of a larger simulation platform for European policymaking (EURACE), allows us to conduct exante evaluations...

We estimate a linear and a piecewise linear Phillips curve model with regional labor market data for West German and Neue Länder. Employing regional observations allows us to country difference the data. This eliminates, under the assumption of homogeneous Länder, supply shocks and changes in...

Previous studies of dismissal protection have largely been based on the analysis of the rules on the books. However, actual outcomes often rely on the involvement of courts. Our model takes this feature into account and explains how relative lobbying power of unions and employer associations in...