s differed from its predecessors in three important respects: productivity, inflation, and cyclical variability. In the … United States, labor productivity increased much faster in the 1990s than in the previous decades and, contrary to the usual … pattern, accelerated with the duration of the expansion. The view that most of the productivity acceleration was only cyclical …

-side policies are effective mainly when they increase the economy's overall productivity and thereby help overcome the labor market …

-unemployment regions). We suggest that the longer people are unemployed, the greater is the likelihood of falling into a low-productivity …) training subsidies. We show that the employment effects of these policies depend crucially on whether low-productivity traps …

been reversed (e.g., after wages relative to productivity have fallen). We suggest that the longer people are unemployed …, the greater is their cumulative likelihood of falling into a low-productivity trap, through the attrition of skills and …) training subsidies. We show that the employment effects of these policies depend crucially on whether low-productivity traps …

-unemployment regions). We suggest that the longer people are unemployed, the greater is the likelihood of falling into a low-productivity …) training subsidies. We show that the employment effects of these policies depend crucially on whether low-productivity traps …

labor market ensures that the long-run unemployment rate is independent of the size of the capital stock, productivity, and … productivity. …

labor market ensures that the long-run unemployment rate is independent of the size of the capital stock, productivity and …