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dc.contributor.authorMerkl, Christianen_US
dc.contributor.authorSnower, Dennis J.en_US
dc.date.accessioned2009-12-11T15:11:44Z-
dc.date.available2009-12-11T15:11:44Z-
dc.date.issued2008en_US
dc.identifier.citation36 4 542-556 Journal of comparative economics 0147-5967en_US
dc.identifier.pidoi:10.1016/j.jce.2008.07.007en_US
dc.identifier.urihttp://hdl.handle.net/10419/28830-
dc.description.abstractThis paper addresses the question of why high unemployment rates tend to persist even after their proximate causes have been reversed (e.g., after wages relative to productivity have fallen). We suggest that the longer people are unemployed, the greater is their cumulative likelihood of falling into a low-productivity "trap," through the attrition of skills and work habits. We develop a model along these lines. which allows us to bridge the gap between high macroeconomic employment persistence versus relatively high microeconomic labor market flow numbers. We calibrate the model for East Germany and examine the effectiveness of three employment policies in this context: (i) a weakening of workers' position in wage negotiations due to a drop in the replacement rate or firing costs, leading to a fall in wages, (ii) hiring subsidies, and (iii) training subsidies. We show that the employment effects of these policies depend crucially on whether low-productivity traps are present.en_US
dc.language.isoengen_US
dc.subject.jelE24en_US
dc.subject.jelJ30en_US
dc.subject.jelJ31en_US
dc.subject.jelJ64en_US
dc.subject.ddc330en_US
dc.subject.keywordLabor marketen_US
dc.subject.keywordLabor market trapen_US
dc.subject.keywordEast Germanyen_US
dc.subject.keywordUnemploymenten_US
dc.subject.stwLangzeitarbeitslosigkeiten_US
dc.subject.stwArbeitsproduktivitäten_US
dc.subject.stwQualifikationen_US
dc.subject.stwArbeitsmarktpolitiken_US
dc.subject.stwKündigungsschutzen_US
dc.subject.stwReformen_US
dc.subject.stwLohnsubventionen_US
dc.subject.stwBerufsbildungspolitiken_US
dc.subject.stwWirtschaftspolitische Wirkungsanalyseen_US
dc.subject.stwSchätzungen_US
dc.subject.stwNeue Bundesländeren_US
dc.titleEscaping the unemployment trap: the case of East Germanyen_US
dc.typeArticleen_US
dc.identifier.ppn592906469en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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