Publication
Jan 2007
This paper addresses the question of why prolonged regional unemployment differentials tend to persist even after their proximate causes have been reversed. The authors suggest that the longer people are unemployed, the greater is the likelihood of falling into a low-productivity "trap". They develop a model along these lines for East Germany and examine the effectiveness of three employment policies in this context. They conclude that these policies depend crucially on whether low-productivity traps are present.
Download |
English (PDF, 30 pages, 297 KB) |
---|---|
Author | Christian Merkl, Dennis J Snower |
Series | Kiel Institute Working Papers |
Issue | 1309 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2007 Kiel Institute for the World Economy |