We conduct an accounting exercise of the role of worker flows between unemployment, employment, and labor force … nonparticipation in the dynamics of the aggregate unemployment rate across four recent recessions: 1982-1983, 1990-1991, 2001, and 2007 … employment and unemployment to account for the dynamics of the unemployment rate, this was not true in the Great Recession. The …

% for a 1 pp decline in the unemployment rate. For large recessions, like the Great Recession, that implies a decline in the …

We propose that the natural rate of unemployment has an active role in the business cycle, in contrast to the … Phillips-curve framework of low - often extremely low - response of inflation to unemployment could be the result of fairly … most Phillips-curve studies, that conclude that inflation has little relation to unemployment. We suggest that the flat …