Berger, Tino; Boll, Paul David; Morley, James; Wong, … - 2021
We consider which labor market variables are the most informative for estimating and now-casting the U.S. output gap … inferences about the output gap. Instead, we show that the alternative U-2 unemployment rate (job losers as a percentage of the … link of the output gap to real labor costs in a New Keynesian setting, we also find that average hourly earnings are …