The recent labour-market performance varies greatly between the United States and continental Europe on the one hand, and between the low- and high-skilled on the other. This book starts by presenting up-to-date empirical evidence on these stylised facts and on the importance of the intensity of...

We forecast unemployment levels for the 176 German labour-market districts on a monthly basis. Because of their small sizes, strong spatial interdependencies exist between these regional units. To account for these, as well as for the heterogeneity in the regional development over time, we apply...

Summary This paper presents an overview of recently developed estimation methods for dynamic panel data models with spatial correlation. We discuss the specification, the main assumptions and the implications of the model. The most important estimation strategy is the application of Generalized...

Purpose – The paper aims to present an analysis of the indirect and direct effects of active labour market policy measures at the regional level for Western Germany. Design/methodology/approach – Most evaluation studies of active labour market policy focus on the microeconometric treatment...

Following Blanchflower and Oswald, a “wage curve†describes the wage level as a downward-sloping convex curve of the regional unemployment rate. This article makes two major contributions in the analysis of the wage curve. First, it is recognized that potential endogeneity of the...

S<sc>uedekum</sc> J., W<sc>olf</sc> K. and B<sc>lien</sc> U. Cultural diversity and local labour markets, <italic>Regional Studies</italic>. The diversity of nationalities of foreign workers in the German labour market has increased considerably over the period 1995-2006. This paper investigates the effects of this diversity for native...