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The unemployment rate in Australia is modelled as an assymmetric and non-linear function of aggregate demand …, productivity, real wagesand unemployment benefits. Negative changes in aggregate demand cause the unemployment rate to rise rapidly …, while real wage rigidity contributes its to slow adjustment back towards a lower level of unemployment. The model is …
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low-paid workers' submarkets. The model fits the job finding, job separation, and unemployment rates well. It also … of the aggregate shock that allows generating the US labor market fluctuations has a correlation with unemployment that …
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