We develop a growth model with unemployment due to imperfections in the labor market. In this model, wage inertia and … equilibrium paths. Hysteresis is viewed as the result of a selection between these different equilibrium paths. We use this model … of the 1970’s may have played a central role in generating hysteresis. …

the optimal policy can increase the volatility of unemployment significantly. Public sector wage and employment shocks … have mixed effects on unemployment. A wage shock raises the unemployment rate, while a reduction in the separations lowers … it. Hiring more people can increase or decrease the unemployment rate. All shocks raise the wage and crowd out employment …

. Controlling for demand-side and supply-side determinants of unemployment, we show that the PTB plays a significant role in … explaining unemployment in the continental European countries, but not in the Nordic nor the Anglo- Saxon ones. We also show that … there is no relationship between the incidence of the PTB and unemployment persistence, even though there is a positive one …

factor productivity, the unemployment rate and the degree of urbanisation are also important determinants of private sector …

counteract a steep increase in unemployment. We show that short-time work can actually save jobs. However, there is an important …

This paper analyses the relation between US inflation and unemployment from the perspective of "frictional growth," a … has not only persistent, but permanent real effects, giving rise to a long-run inflation-unemployment tradeoff. We … the US unemployment and inflation trajectories during the nineties. …

unemployment rate. Exogenous shocks (such as aging) leading to lower interest rates also imply lower equilibrium unemployment rates …