We reconsider the central role of the natural rate of unemployment (NRU) in forming policy decisions. We show that the … unemployment rate does not gravitate towards the NRU due to frictional growth, a phenomenon that encapsulates the interplay between … empirical analysis and find that the NRU explains only 33% of the unemployment variation, while frictional growth accounts for …

This paper asks how well Okun’s Law fits short-run unemployment movements in the United States since 1948 and in … the unemployment rate—varies substantially across countries. This variation is partly explained by idiosyncratic …

unemployment, and end up being circumvented by informal contracts. This paper uses Brazilian microeconomic data to show that the … could have contributed to the ensuing higher rates of unemployment in the country. Moreover, the paper shows that states …