We reconsider the central role of the natural rate of unemployment (NRU) in forming policy decisions. We show that the … unemployment rate does not gravitate towards the NRU due to frictional growth, a phenomenon that encapsulates the interplay between … empirical analysis and find that the NRU explains only 33% of the unemployment variation, while frictional growth accounts for …

We distinguish and assess three fundamental views of the labor market regarding the movements in unemployment: (i) the … that all the short-run fluctuations automatically turn into long-run changes in the unemployment rate. We assert the …

The evolution of Spanish unemployment has been quite idiosyncratic. The full employment levels of the early seventies … were followed by unemployment rates that were the highest within the OECD countries in the aftermath of the oil price … shocks. While unemployment was extremely persistent in most of the eighties and nineties, it experienced its sharpest decline …

causes of the unemployment upturn in 1973-1983 and the subsequent decline in 1993-2006. Our results show that (i) the main … determinants of the unemployment rise in the 1970s and early 1980s were wage-push factors, the two oil price shocks and the … increase in interest rates, and (ii) the acceleration in capital accumulation was the crucial driving force of unemployment in …

fundamental role in shaping unemployment movements. This role has generally been examined by considering indirect transmission … single-equation unemployment rate models. Here we advocate a different approach. We directly estimate the effects of capital … stock in the labour market by applying the chain reaction theory of unemployment, and we find that capital stock is a major …

. When we evaluate the use of AWAs against unemployment, there is also evidence that the jobless are entering AWAs as …

This paper provides a critique of the "unemployment invariance hypothesis," according to which the behavior of the … labor market ensures that the long-run unemployment rate is independent of the size of the capital stock, productivity, and … equilibrating mechanisms to ensure unemployment invariance and that other markets may perform part of the equilibrating process as …

-varying labor market institutions. While the positive effect of severance pay on unemployment garners some support, there is no real …In this study we examine the contribution of severance pay to employment and unemployment development using data on … collective bargaining coordination, the role of institutions is also more muted than suggested in the literature. …