unemployment, and end up being circumvented by informal contracts. This paper uses Brazilian microeconomic data to show that the … could have contributed to the ensuing higher rates of unemployment in the country. Moreover, the paper shows that states …

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. …