Spain and Portugal are two neighbour economies which share many characteristics. Spanish unemployment is more than … double Portuguese unemployment, however. In this chapter we resort to Structural Vector Autoregression (SVAR) techniques to …, their effects on unemployment were much more long-lasting in Spain than in Portugal. …

This paper examines the degree of persistence of regional relative unemployment. A theoretical model is built to … such persistence. The model is used to account for the observed degree of persistence of regional relative unemployment in …

We reformulate the Smets-Wouters (2007) framework by embedding the theory of unemployment proposed in Galí (2011a …,b). We estimate the resulting model using postwar U.S. data, while treating the unemployment rate as an additional observable … output gap. In addition, the estimated model can be used to analyze the sources of unemployment fluctuations. …

variables (unemployment, inflation, relative prices and the current account), and seeks to uncover the role played by monetary …

In Portugal real wage flexibility, at the macroeconomic level, is noticeably higher, while unemployment duration is … lower, when compared to Spain. This suggests that the hardship of being unemployed is higher in Portugal. Unemployment … benefits and family insurance, which are the main buffer against unemployment and have played different roles in both countries …

labour market institutions. Our aim is to explain the main sources of shocks to unemployment, and the most relevant features …In this paper we analyse the underlying causes behind Spanish unemployment which is now at 24%. We interpret this …