"Active labour-market policy (ALMP) not only affects the labour-market success of participants. Due to indirect effects, they might also affect the job perspectives of non-participants. Hence, even if ALMP programmes have a positive effect for the participants, this does not mean that ALMP...

This paper presents an outline of the so-called Shift-Share Regression and an application of this method to the analysis of employment development. The method used is not a deterministic decomposition such as the classical Shift-Share-Analysis, but a powerful, yet simple and flexible econometric...

One of the key issues in economics is the explanation of unemployment and its variation across different economies. Doing so, modern mainstream macroeconomics refers to the effects of financial crises and to institutional structures and their variation across countries. However, unemployment...

One of the key issues in economics is the explanation of unemployment. Doing so “modern mainstream macroeconomics” frequently refers to institutional structures in the individual countries (e.g. Layard, Nickell & Jackman 1991, 2006; Carlin & Soskice 2006). However, unemployment...

Reservation wages indicate the wage threshold for which individual workers are inclined to supply their working capacity. In important theoretical approaches it is assumed that this threshold depends on the unemployment rate. If this is true, the variation of reservation wages might be an...

20 years after the fall of the Berlin Wall there is still a strong division between the economies and labour markets of eastern and western Germany. In the last few years, however, unemployment has been reduced especially in the East, even in times of economic crisis. Within eastern Germany a...

"Institutionalised in its own working group, the IAB carries out regional research in order to obtain findings about the development of regional disparities and about the way regional labour markets work. This research also helps in the analysis and discussion of regional labour market policy...

"This paper examines the effects of regional wage differentials on the development of employment in eastern Germany. For this, a model concept is briefly developed which is aimed at different market constellations of individual branches of the economy. The empirical approach used is a...

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...