persistence. This view is questioned in the paper using German data on unemployment. A new class of time-series models, the … able to generate fragile equilibria. For instance, in this literature the natural unemployment rate is allowed to shift … over time depending on past unemployment. Actually, many European unemployment series seem to exhibit a unit root or …

consistent with existing theories of unemployment hysteresis that focus on depreciation of human capital and search activity …On the basis of macro data from 10 OECD countries, I find that the job vacancy rate outperforms the unemployment rate … as a reliable measure of domestic inflationary pressure. Moreover, while the rate of unemployment affects inflation …

.14 percentage-point higher unemployment rate at ages 25-29 and 0.03 percentage points higher at ages 30-34. The persistence of this … worker who experiences a one-percentage-point higher unemployment rate while the worker is 16-24 years old has a 0 … rigidity is constructed and the index is shown to have positive correlation with the persistence. Moderating macroeconomic …

differences: (1) transition rates from unemployment to employment (UE) were lower by a factor of 5 and inflow rates from … employment to unemployment (EU) were lower by a factor of 4 in Germany. (2) The volatility of the UE rate was equal but the EU … rate was 2.3 times more volatile in Germany. (3) In Germany EU flows contributed 60 − 70% to the unemployment volatility …

−2004 uncovers three stylized differences: (1) Germany’s mean transition rates from unemployment to employment (UE) were lower by a … factor of 5 and transition rates from employment to unemployment (EU) were lower by a factor of 4. (2) The volatility of the … contributed 60−70% to unemployment volatility, whereas in the U.S. they contributed only 30−40%. Using a search and matching model …

In recent years a large theoretical and empirical literature has emerged on hysteresis in unemployment. This paper … less severe form of hysteresis, called persistence, emerges quite readily from models with reasonable assumptions. The … explain hysteresis. The review finds that while the assumptions required to generate full hysteresis are somewhat extreme, a …

What explains the persistence of unemployment? The literature on hysteresis, which is based on unit root testing in … autoregressive models, consists of a vast number of univariate studies, i.e. that analyze unemployment series in isolation, but few … multivariate analyses that focus on the sources of hysteresis. As a result, this question remains largely unanswered. This paper …

We present a generalization of the standard random-search model of unemployment in which firms hire multiple workers … investigation of the out-of-steady state dynamics of our model. We find that the responses of unemployment and of the vacancy to … unemployment ratio to a shock to labor productivity can be somewhat more persistent than in the Mortensen-Pissarides benchmark …