decisions can simultaneously account for the observed behavior of employment, unemployment and out-of-the-labor-force. This … unemployment and out-of-the-labor-force into a single non-employment state or assuming a fixed labor force participation. Once the …

The natural rate of unemployment changes over time as a result of structural shifts in the distribution of employment …. A time--varying measure of the natural rate is constructed as the rate of unemployment that is consistent with the … economy growing at its equilibrium rate, conditional on the level of labor market turbulence. The natural rate of unemployment …