Using German data this study applies an unobserved-components approach to disentangle the unemployment rate into a … trend component of unemployment, which triggers permanent reactions of the workers, is likely connected to a structural … effect. By splitting up the participation effect of changes in the unemployment rate our analysis differs profoundly from …

in German unemployment is fully explained by hysteresis. The Great Recession was well absorbed because both hysteresis … effects and structural unemployment were substantially reduced after institutional reforms. In contrast, U.S. unemployment did …

in German unemployment is fully explained by hysteresis. The Great Recession was well absorbed because both hysteresis … effects and structural unemployment were substantially reduced after institutional reforms. In contrast, U.S. unemployment did …

components of matching efficiency and separation rate (shifting parameters) as well as unemployment and vacancies. Cointegration …

macroeconomic outcome of the reforms. For that purpose, we construct a new empirical model that links equilibrium unemployment … and separation rate as well as unemployment and vacancies. Cointegration and identification are addressed. We find that …

This paper examines the relative importance of the structural and the persistence approach to unemployment. We set out … a standard imperfect competition model that decomposes observed unemployment into a structural and a persistent cyclical … component. The natural rate of unemployment is treated as an unobserved variable that has observable effects on the measured …