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. …

This study explores the effects of labor and product market deregulation on employment growth. Our empirical results … employment growth, including through sizable interaction effects. Based on these findings, the paper develops a theoretical …