We propose a proxy for trend unemployment derived from the cointegration property between unemployment rates and world oil prices. Evidence from a sample of OECD countries is presented in support of the hypothesis. We argue that our empirical proxy is superior from an economic perspective to at...

We propose a proxy for trend unemployment derived from the cointegration property between unemployment rates and world oil prices. Evidence from a sample of OECD countries is presented to support the hypothesis. We argue that our empirical proxy is superior from an economic perspective to at...