We extend the standard quality-ladder model with heterogeneous workers by including efficiency wages and unions. We find that higher union bargaining power leads to a negative relationship between growth and unemployment. An increase in the supply of human capital, however, on the one hand...

The recent labour-market performance varies greatly between the United States and continental Europe on the one hand, and between the low- and high-skilled on the other. This book starts by presenting up-to-date empirical evidence on these stylised facts and on the importance of the intensity of...

We investigate the regional disparities in high-skilled foreign employment in Germany. The importance of different factors which attract highly qualified migrants to specific regions and the role of labour-migration policy is analysed. Our results show that labour-market variables as well as the...