where aggregate shocks have a permanent effect on the unemployment rate. If agents' wealth decreases, the unemployment rate … increases for a potentially indefinite period. This makes unemployment rate dynamics path dependent as in Blanchard and Summers … (1987). I argue that this feature explains the persistence of the unemployment rate in the U.S. after the Great Recession …

value of GDP via the fiscal stance’s effects on the output gap and hysteresis. We find that the absolute size of the … significantly boost the present value of GDP via effects on the output gap and hysteresis. The potential success of such efforts …

policies should also help reduce the scope for further hysteresis effects to develop (e.g., loss of skills, discouragement). …

We study the role of uncertainty shocks in explaining unemployment dynamics, separating out the role of aggregate and … measure aggregate and sectoral uncertainty and compare their effects on the unemployment rate in a standard macroeconomic … vector autoregressive (VAR) model. We find that aggregate uncertainty leads to an immediate increase in unemployment, with …

impact on unemployment in the short term, but that this effect rapidly disappears in the medium term in countries with … with more rigid labor market institutions. These effects are even larger for youth unemployment in the short term and long …-term unemployment in the medium term. Conversely, large upfront, or gradual but significant, comprehensive labor …

inflation, unemployment, government deficit, and GDP growth into a single indicator. In contrast to other indexes, the EPI does …

While the unemployment rate in the Baltics has fallen sharply from its crisis-peaks, it remains close to double digits …. Our main findings are that the current still elevated levels of unemployment mostly reflect structural factors. We then … turn to why structural unemployment is so high. This paper points to skill mismatches, high tax wedges, and unemployment …

methodology is applied to Polish micro data. The estimates confirm that wages are less elastic in a high-unemployment …

productivity in Algeria is associated with higher unemployment than the sample average, though recent positive terms of trade … unemployment is higher in Algeria than in other countries. The results are robust to various panel econometric methods and …