This paper examines the consequences of capital and labour subsidies for employment, capital formation and other macroeconomic variables within an OLG small open economy model of wealth accumulation. Two cases, the neoclassical-equilibrium one and the modern-equilibrium one, have been analysed....

In an efficiency wage economy, lump-sum severance pay from which shirkers can be excluded raises employment. However, severance payments are usually related to wages. It is shown that earnings-related, mandated severance pay will have ambiguous employment effects if effort can be varied...

Empirical and theoretical studies suggest that employment behaviour varies with the state of the labour market since hiring and firings costs depend on the availability of labour. Extending earlier empirical work on this subject, we test for state dependence in employment adjustment and in the...

The paper aims to shed light on the relationships between labour market institutions with respect to wage formation and the effectiveness of economic and labour market policies in enhancing employment and overall economic performance. We evaluate tax and benefit policies under four alternative...

This paper studies the impact of labour taxation in a shirking model with wage bargaining.It is shown that if the ratio of unemployment compensation to the net-of-tax wage iskept fixed a tax cut leads to higher unemployment. When the unemployment benefitsreplacement ratio is allowed to change,...

Die Einführung des Mindestlohns im deutschen Maler- und Lackiererhandwerk im Jahr 2003 wird als natürliches Experiment genutzt, um die Effekte von Mindestlöhnen auf Löhne und Beschäftigung zu untersuchen. Wir finden einen signifikant positiven Effekt auf den durchschnittlichen Stundenlohn...

The Minimum wage in the roofing sector, which was introduced in 1997 and transferred to a national and generally binding level in 2003, has particularly affected the sector in Eastern Germany, even in an international comparison. However, the concomitant effective cost burden is limited. Based...

The introduction of a minimum wage in the care sector in August 2010 was the first time that a minimum wage was introduced in a health sector. Furthermore, in contrast to other industries with minimum wages, the care sector has continually increased in recent years. Our results show that...

The introduction of the minimum wage in the German painter and varnisher trade in 2003 is used as a natural experiment to study the effects of minimum wages on wages and employment. We find a significant positive effect on the average hourly wage of skilled workers in East Germany, but not in...