restrictions affects the outcome of the matching process and the natural rate of unemployment in Tunisia. The paper concludes that … the removal of firing restrictions is likely to produce a favorable but limited impact on unemployment in Tunisia. …

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. …