, we simulate the effects of this reform on unemployment, employment, and welfare. We estimate that the CNE will lead to … countries or reforms of employment protection laws. Using a model that captures the characteristics of the French labor market …

We propose a theory of low-frequency movements in unemployment based on asymmetric real wage rigidities. The theory … generates two main predictions: long-run unemployment increases with (i) a fall in long-run productivity growth and (ii) a rise …-run unemployment over the 1980s and its rise during the late 2000s. …