We develop a growth model with unemployment due to imperfections in the labor market. In this model, wage inertia and … equilibrium paths. Hysteresis is viewed as the result of a selection between these different equilibrium paths. We use this model … of the 1970?s may have played a central role in generating hysteresis. …

growth drivers. Estimating a system of labor market equations for a panel of EU countries, we derive the dynamic unemployment …This paper presents a reappraisal of unemployment movements in the European Union. Our analysis is based on the chain … reaction theory of unemployment, which focuses on (a) the interaction among labor market adjustment processes, (b) the …

High rates of unemployment entail substantial costs to the working population in terms of reduced subjective well … individual panel data for Germany and repeated cross-sectional data for the United States and the European Union show that the … sensitivity of subjective well-being to fluctuations in unemployment rates is much lower in the public sector than in the private …

This paper analyzes the effects of different labor market institutions on inflation and output volatility. The eurozone …. We use a New Keynesian model with unemployment to predict the effects of different labor market institutions on …

transition rates. We focus on hysteresis effects of the durations and incidence of previous spells out of work. We estimate … flexible multi-state Mixed Proportional Hazard specifications for transition rates between employment, unemployment, and …' transition rates from unemployment to employment increase. Longer periods of non-employment generally decrease future transition …

This paper compares models used to explain OECD unemployment. The models suggest that the ?natural rate of unemployment …? has been driven up mainly by wage push factors. Panel data on twenty-two OECD countries are used to investigate the …

real wages and low unemployment result. With an intermediate view, i.e. when partial equilibrium effects within a sector … are taken into account, high real wages and unemployment result. If all general equilibrium effects are considered at once …, low real wages and low unemployment again result. The assumption that unions and employers? federations are not able to …

In this paper, we argue that credit market imperfections impact not only the level of unemployment, but also its … steady-state unemployment, but also slow down the transitional dynamics. We then provide an empirical illustration based on a … country panel dataset of 20 OECD countries. Our results suggest that credit market imperfections significantly increase the …

The aim of this paper is to analyze and estimate salient characteristics of unemployment dynamics. Movements in … unemployment are viewed as "chain reactions" of responses to labor market shocks, working their way through systems of interacting … aggregate measures of unemployment responses to temporary and permanent shocks. These measures are temporal (depicting how long …