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Search Frictions and the Labor Wedge
Tasci, Murat; Pescatori, Andrea - International Monetary Fund (IMF) - 2011
This paper shows that labor market search frictions do not explain fluctuations in the labor wedge per se. However, the introduction of extensive and intensive margin clarifies that measuring the MRS in terms of total hours artificially introduces procyclicality in the MRS. When the MRS is...
Persistent link: https://www.econbiz.de/10009147322
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Unemployment and Productivity in the Long Run; The Role of Macroeconomic Volatility
Surico, Paolo; Ricci, Luca Antonio; Benigno, Pierpaolo - International Monetary Fund (IMF) - 2010
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. …
Persistent link: https://www.econbiz.de/10008727811