Monetary Policy Committee (MPC) to both unemployment and underemployment, which in our view are invalid. Without any evidence … the MPC in its assessment of the output gap reduces the level of unemployment because of its claim that long …-term unemployment has no effect on wages. We produce contrary evidence. The MPC further reduces the level of underemployment in the …

In this paper we examine the impact of rises in inactivity on wages in the US economy and find evidence of a … impact of the unemployment rate itself. This pattern holds across recent decades in the US data, and the relationship … strengthens in recent years when variation in participation increases. We also examine the impact of long-term unemployment on …

US state are a precursor to eventual sharp rises in unemployment in that state. The elasticity exceeds unity: A doubling … of the rate of home-ownership in a US state is followed in the long-run by more than a doubling of the later unemployment …