-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 …

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 …

This paper examines the potential contribution of unemployment hysteresis theories to the understanding of the Belgian … emerge: (i) the long-term unemployed do not exert a negative impact on wages; and (ii) there is some evidence that the … than those of the unemployed “outsiders.” In addition, it is argued that the automatic indexation of wages to prices in …

detrimental medium-term effects on output, unemployment, poverty, and inequality. However, policies can go a long way toward … relatively greater fiscal support. The increases in unemployment, poverty, and inequality are likewise lower for countries with …

This paper provides new empirical evidence on the relationship between reservation wages of unemployed workers and … macroeconomic factors--including the unemployment rate and generosity of the unemployment compensation system--as well as individual …-specific determinants, such as human capital proxies and length of unemployment spell. The longitudinal dataset provides an interesting …

This paper examines the effect of skill-biased technological change on the structure of wages, the composition of … employment and the level of unemployment in a two-sector economy with a heterogenous work force. Efficiency wage considerations …

impact on aggregate labor market performance and unemployment. In a two-sector labor market model with free mobility of labor …, an increase in government wages or benefits reduces private sector employment, and government employment is not an …

unemployment. Key elements of the reforms were a drastic cut in benefits for the long-term unemployed and tighter job search and … reforms were associated with a fall in the earnings of workers returning to work from short-term unemployment relative to …