reducing employment protection of permanent workers. Substantially reforming the collective bargaining system and reducing the …The Spanish labor market is not working: the unemployment rate is structurally very high; wages are not very responsive … to labor market conditions, causing a high cyclicality of unemployment; and the labor market is highly dual. Compared …

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. …