generates two main predictions: long-run unemployment increases with (i) a fall in long-run productivity growth and (ii) a rise …We propose a theory of low-frequency movements in unemployment based on asymmetric real wage rigidities. The theory … in the variance of productivity growth. Evidence based on U.S. time series and on an international panel strongly …

generates two main predictions: long-run unemployment increases with (i) a fall in long-run productivity growth and (ii) a rise …We propose a theory of low-frequency movements in unemployment based on downward real wage rigidities. The theory … in the variance of productivity growth. Evidence based on U.S. time series and on an international panel strongly …

The paper presents a new empirical regularity between the volatility of productivity growth and long-run unemployment …, for a given level of long-run productivity growth. A theoretical framework based on asymmetric real wage rigidities is … shown to have the potential to rationalize this finding. The model tends to fit U.S. long-run unemployment better than a …

The paper presents a new empirical regularity between the volatility of productivity growth and long-run unemployment …, for a given level of long-run productivity growth. A theoretical framework based on asymmetric real wage rigidities is … shown to have the potential to rationalize this finding. The model tends to fit U.S. long-run unemployment better than a …

generates two main predictions: long-run unemployment increases with (i) a fall in long-run productivity growth and (ii) a rise …We propose a theory of low-frequency movements in unemployment based on asymmetric real wage rigidities. The theory … in the variance of productivity growth. Evidence based on U.S. time series and on an international panel strongly …

Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume … jobs. This form of wage rigidity does not affect job creation and thus cannot explain the unemployment volatility puzzle … workers, unlike the aggregate wage, is volatile and responds one-to-one to changes in labor productivity. In order to …