Why does a dynamic growing economy have a persistent long-term unemployment problem? Research Associates Baumol and … skills obsolete can cause an increase in the overall rate of unemployment and the length of time during which an unemployed … policy is to find ways to offset the problems caused by this rising level and duration of unemployment. …

The mean duration of unemployment has approximately doubled in the U.S. between the early 1950s and the mid-1990s, with … unemployment with the speed of technical change. Using aggregate time-series data for the U.S., we find strong evidence that both … positive effect on mean unemployment duration. Moreover, literally all of the two-thirds rise in mean unemployment duration …

automatically to bring the economy back, if not to "full employment," at least to a fairly stick "natural rate of unemployment" seem … delay. The Keynesian approach suggests (subject to some recent concessions to the notion of the natural rate of unemployment … materially, what used to be referred to as "frictional unemployment," thereby raising the natural rate of unemployment …