response to changes in the unemployment rate. This paper offers a theoretical justification for such a nonlinear policy rule …

despite declines in unemployment rates. For the United States, these seemingly contradictory developments have been reconciled … natural unemployment rate (NAIRU), and (3) improved credibility of monetary policy. Here we ask whether comparable factors … between inflation, the unemployment rate, and structural factors using an extended Phillips curve model with quarterly data …

It is frequently alleged that the persistent, high rates of unemployment in many European countries are due, at least …

We look for evidence of "hysteresis" in the U.S. unemployment rate - that is, that current labor market outcomes affect … the future equilibrium level of the unemployment rate. We first examine (using a variety of econometric tests for unit … roots) whether the unemployment rate tends to come back to a long-run average over time. On balance, our results suggest …

rather than accept a low-wage job. In this case, unemployment can serve as a signal of productivity, and unemployment … whose plant closed cannot be recalled, longer unemployment duration should not have a positive signaling benefit for such … that the wage/unemployment duration relation differs between the two groups in the predicted way, and finds evidence …

This paper presents a search model of unemployment with a new mechanism of job separation based on firms' demand … about unemployment that the Mortensen-Pissarides (1994) model has difficulties explaining jointly: (i) the unemployment …-vacancy correlation is negative, (ii) the contribution of the job separation rate to unemployment fluctuations is small but non …

This paper examines the determinants of the natural rate of unemployment using a combined cross section and time series … temporary employment in a local labor market tends to lower the natural rate of unemployment--most likely through the matching … as 1/4 percentage point. The results also indicate that unemployment insurance benefits tend to boost the natural rate …