Michaillat, Pascal; Saez, Emmanuel - National Bureau of Economic Research - 2022
employment is the efficient unemployment rate, u*. We define u* as the unemployment rate that minimizes the nonproductive use of …Most governments are mandated to maintain their economies at full employment. We propose that the best marker of full …). Accordingly, the efficient unemployment rate is the geometric average of the unemployment and vacancy rates: u* = √uv. We compute …