that the employment rate is slow to converge to its steady state value after a monetary shock. The after-effects of a shock … continue to exert an effect on the labor market even long after the shock is over. The sluggishness of the labor market … translates to the product market and thus the output effects of the monetary shock become more persistent. Under reasonable …

well. By implication, policies that stimulate investment and R&D and policies that affect the size of the labor force may …

reaction theory of unemployment, which focuses on (a) the interaction among labor market adjustment processes, (b) the … responses to each shock. Our analysis permits us to distinguish between the short- and longrun effects of the shocks. Different …

labor resources generated in the aftermath of a shock). Furthermore, we estimate the contributions of individual lagged …

This article is an idiosyncratic survey of the insider-outsider theory, describing the vision underlying the theory … been dead-ends and red herrings in past research. The first section deals with the theory, concerning how labor turnover … shocks. The second section deals with the insider-outsider theory in relation to two important economic institutions: unions …