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. …

unemployment. The estimated unemployment gap is found to track well pressures on resource constraints. Moreover, the overall … results show that, prior to the recent global financial crisis, Poland's output and employment were both growing above …