labor market and skill obsolescence from long-term unemployment. The model can account for key features of the Great … aggregate demand raises unemployment and the training costs associated with skill obsolescence. Lower employment hinders … contractionary effect on output. The temporary growth slowdown translates into output hysteresis (permanently lower output and labor …

labor market and skill obsolescence from long-term unemployment. The model can account for key features of the Great … aggregate demand raises unemployment and the training costs associated with skill obsolescence. Lower employment hinders … contractionary effect on output. The temporary growth slowdown translates into output hysteresis (permanently lower output and labor …

findings and confirms hysteresis in all unemployment rates except for Asian economies/countries of Thailand and the Philippines. …The focus of our study is on determining whether unemployment rates in 8 New Industrialized Economies conform to the … natural rate hypothesis or the hysteresis hypothesis. To this end, we employ a variety of unit of unit root testing procedures …

real wages and low unemployment result. With an intermediate view, i.e. when partial equilibrium effects within a sector … are taken into account, high real wages and unemployment result. If all general equilibrium effects are considered at once …, low real wages and low unemployment again result. The assumption that unions and employers' federations are not able to …