lead to unemployment surges, as firms are forced to cut costs when financing becomes expensive or is no longer available …. As a result, all countries with risk premium shocks saw unemployment surge, even as euro area core countries managed to … contain unemployment as firms hoarded labor during the downturn. Most striking, wage bills in euro area crisis countries and …

multiplier is inversely correlated with r-g. The calculations are based on the estimates of a factor-augmented interacted panel …

We build a factor-augmented interacted panel vector-autoregressive model of the Euro Area (EA) and estimate it with …

-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 … labor market. It estimates models of wage determination using aggregate and firm-level panel data. Two main conclusions …

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 signficantly more difficult …

We investigate the properties of Johansen''s (1988, 1991) maximum eigenvalue and trace tests for cointegration under …