The unemployment rate might not serve as an accurate measure of labor market slack when analysing countries with large scale labor market programs. We replicate and extend the wage curve for East Germany. The results are in favor of the incorporation of such policy measures.
The European social-welfare model differs from the North American individualistic model in the patterns, more than the overall extent, of ethnic inclusion and exclusion. Focussing on foreigners in Germany and immigrants in Canada as illustrative cases, conventional earnings decomposition analysis is extended cross-nationally to highlight institutional effects, using the German Socio-Economic Panel ...