This paper explores the evidence for positive hysteresis in the labor market. Using data from the National Longitudinal … Surveys of Youth, we find that negative labor market outcomes during high-unemployment periods are mitigated by exposure to a …

This paper studies the dynamics of unemployment (u) and its natural rate (u*), with u* measured by real-time estimates … for 29 countries from the OECD. We find strong evidence of hysteresis: an innovation in u causes u* to change in the same …

unemployment, several European economies display highly persistent unemployment dynamics. The theory of hysteresis challenges this … strong empirical evidence of unemployment hysteresis in advanced economies since the 1990s. Relying on an identification … adjustment of real wages, removing disincentives for firms to hire and for workers to be employed, and improving the matching …

research suggests that these effects are uncertain and critically depend on how public wages are determined. Rigid public … sector wages lead to perverse effects on private employment, while flexible public wages lead to a stabilizing effect. Public …