of real shocks. Consequently, more advanced economies should have higher unemployment rates and be more prone to crisis …

The paper presents a new empirical regularity between the volatility of productivity growth and long-run unemployment …, for a given level of long-run productivity growth. A theoretical framework based on asymmetric real wage rigidities is … shown to have the potential to rationalize this finding. The model tends to fit U.S. long-run unemployment better than a …

matching function. Wages are determined through Nash bargaining. We also consider aggregate productivity shocks, and a complete …We use the model to evaluate a tax-financed unemployment insurance scheme. Higher insurance is beneficial for … demonstrate that productivity changes in the model---in steady state as well as stochastic ones---generate rather limited …

Throughout the postwar era until 1995 labor productivity grew faster in Europe than in the United States. Since 1995 …, productivity growth in the EU-15 has slowed while that in the United States has accelerated. But Europe's productivity growth … between the EU and US going back to 1980. This paper is about the strong negative tradeoff between productivity and employment …

In this paper, in order to study the impact of offshoring on sectoral and economywide rates of unemployment, we … construct a two sector general equilibrium model in which labor is mobile across the two sectors, and unemployment is caused by … search frictions. We find that, contrary to general perception, wage increases and sectoral unemployment decreases due to …

employment generation have been disappointing. Most worryingly, unemployment is currently among the highest in the world. While … the proximate cause of high unemployment is that prevailing wages levels are too high, the deeper cause lies elsewhere …. High unemployment and low growth are both ultimately the result of the shrinkage of the non-mineral tradable sector since …

How have labor market institutions and welfare-state transfers affected jobs and productivity in Western Europe … harmed either employment or GDP. Even unemployment benefits do not have robustly negative effects …

This paper explains the divergent behavior of European and US unemployment rates using a job market matching model of … increase in real interest rates, and an increase in tax rates leads to a permanent increase in unemployment rates when the … replacement rates or initial tax rates are high, while no increase in unemployment occurs when institutions are 'employment …

We present a model in which workers' aspirations for wage increases adjust slowly to shifts in productivity growth. The … model yields a Phillips curve with a new variable: the gap between productivity growth and an average of past wage growth … unemployment-inflation tradeoff since 1995 …