This paper is concerned with the study of the labor market performance of immigrants. The unemployment rate is used as an indicator and natives as the reference group for the analysis. The analysis proceeds in two stops. In a first step, probit regressions on the unemployment probabilities are...

This paper is the first to show theoretically and empirically how firms' production technology affects the choice of their preferred wage formation regime. Our theoretical framework predicts, first, that the larger the total factor productivity of a firm, the more likely it is to opt for...

This paper investigates the reservation wages of unemployed persons on the basis of a job-search model with non-static reservation wages using panel data from Germany from 1987 to 1998. The results suggest that reservation wages are relatively high in Germany compared to other countries....