In this article, we investigate the existence of infrequent shocks and the degree of persistence of unemployment in the US and Spain over the period 1976-2004. We first apply the minimum Lagrange Multiplier unit root test with up to two endogenous changes in level. The evidence gives support to...

We estimate the probability of public sector wage leadership -- defined as Granger causality from public to private sector wages -- in a pool of 15 Organization for Economic Cooperation and Development (OECD) countries as a function of countries' institutional features, and notably wage-setting...