This paper analyzes the dynamic effects of different macroeconomic shocks on unemployment in Germany. In a first step …, a cointegration analysis of productivity, prices, real wages, employment, and the unemployment rate reveals two long run … display that price, demand, and labor supply shocks affect unemployment significantly in the short/medium run. Interestingly …

After an expansionary monetary policy shock employment increases and unemployment falls. In standard New Keynesian … models the fall in aggregate unemployment does not affect employed workers at all. However, Lüchinger, Meier and Stutzer … (2010) found that the risk of unemployment negatively affects utility of employed workers: An increases in aggregate …

model of unemployment, which is exposed to the asymmetric expellee inflow, closely fits historical data on the regional … unemployment differential and the regional migration rate. Both variables increase dramatically after the inflow and decline only …

. Especially for unemployment we find large effects of an increased foreign share. We conjecture that these results might be … spurious. Foreigners tend to be concentrated in lower unemployment areas but unemployment tends to be mean reverting during the … boom period we study. This leads to a positive correlation between the instrument and the change in unemployment. Taking …