The literature on wage bargaining so far mainly argues that unemployment benefits are relevant outside options for employees. This paper demonstrates that also a change in outside wage options drives wages in continuing jobs. The authors use the natural experiment of a crafts reform that reduces...

Early retirement options are usually targeted at employees at risk of not reaching their regular retirement age in employment. An important at‐risk group comprises employees who have worked in demanding jobs for many years. This group may be particularly negatively affected by the abolition of...

This paper provides a labour supply explanation to the observation that in Germany employment changes are asymmetric during the business cycle. Employment increases are slower, because the reservation wage of workers increases in times of job uncertainty. Workers are afraid in those periods of...

The US labour market is characterized by a high skill wage mark-up and low unemployment, while the German labour market has a low skill wage mark-up and a high, mainly unskilled unemployment rate. This paper adds an innovative labour supply explanation to the discussion how these distinct labour...

Employee resistance against innovations is a virulent phenomenon and there is a broad theoretical literature on its determinants. The empirical evidence is scarce, however, and mainly provides descriptive evidence on the incidence of the phenomenon and concentrates on the effectiveness of change...

This paper analyses the determinants of employment reactions of firms when environmental innovations have been carried out. It differentiates hereby between employment increases and decreases. The data stem from a telephone survey covering more than 1500 firms in five European countries that...

The literature on skill-biased technological change concentrates on highly skilled and unskilled employees. It is unclear, however, if the employment opportunities of the majority of the labour force in Germany-employees with a degree from the dual apprenticeship system-increase or not. In...

This paper analyses the determinants of employment reactions in-duced by environmental innovations. On the basis of the parameter estimates of the Multinomial Logit and of several Multinomial Probit Models, we show that we have to distinguish between the factors that have an impact on employment...