Hashimoto, Ken-Ichi; Ono, Yoshiyasu; Schlegl, Matthias - 2021
In this paper, we show that underemployment and not necessarily high unemployment becomes the main measure of economic … slack under secular stagnation. Specifically, persistent underemployment occurs in the search and matching model, provided … and cost shocks can explain movements of unemployment and underemployment in opposite directions, while demand and supply …