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-recession trend, suggesting hysteresis. Second, while inflation has decreased, it has decreased less than anticipated, suggesting a … unemployment on inflation,for given expected inflation, decreased until the early 1990s, but has remained roughly stable since then …
Persistent link: https://www.econbiz.de/10013002151
We argue that in an economy with downward nominal wage rigidity, the output gap is negative on average. Because it is more difficult to cut wages than to increase them, firms reduce employment more during downturns than they increase employment during expansions. This is demonstrated in a simple...
Persistent link: https://www.econbiz.de/10012862445
We develop a bottom-up model of inflation in the euro area based on a set of augmented Phillips curves for seven subcomponents of core inflation and auxiliary regressions for non-core items. We use the model’s disaggregated structure to explore which factors drove the deterioration in...
Persistent link: https://www.econbiz.de/10014264528
This paper asks how well Okun's Law fits short-run unemployment movements in the United States since 1948 and in twenty … the unemployment rate-varies substantially across countries. This variation is partly explained by idiosyncratic features …
Persistent link: https://www.econbiz.de/10013085991
Despite its low unemployment rate, the recent shift in the Japanese Beveridge curveindicates increased labor mismatch …
Persistent link: https://www.econbiz.de/10013074692
relatively minor intervention can dramatically increase the fragility of jobs, the length of unemployment spells, as well as the … extent of unemployment and labor market churning. With institutions of the type studied here common across many different …
Persistent link: https://www.econbiz.de/10012783081
education in the labor force and when long-term unemployment is more pronounced. Policies which could facilitate labor market … policies, such as unemployment benefits, as well as labor taxation render matching significantly more difficult …
Persistent link: https://www.econbiz.de/10012977727
In this paper, we provide compelling evidence that cyclical factors account for the bulk of thepost-2007 decline in the U.S. labor force participation rate. We then proceed to formulate astylized New Keynesian model in which labor force participation is essentially acyclical during“normal...
Persistent link: https://www.econbiz.de/10013061162
While unemployment rates in Europe declined after the global financial crisis until 2018/19, the incidence of long …-term unemployment, the share of people who have been unemployed for more than one year to the total unemployed, remained high. Moreover …, the COVID-19 pandemic could aggravate the long-term unemployment. This paper explores factors associated with long …
Persistent link: https://www.econbiz.de/10013315122
The paper uses a large survey (GSOEP) to analyze the labor market performance of immigrants in Germany. It finds that new immigrant workers earn on average 20 percent less than native workers with otherwise identical characteristics. The gap is smaller for immigrants from advanced countries,...
Persistent link: https://www.econbiz.de/10012996034