unemployment, several European economies display highly persistent unemployment dynamics. The theory of hysteresis challenges this … strong empirical evidence of unemployment hysteresis in advanced economies since the 1990s. Relying on an identification … unemployment rates to pre-shock levels. …

.14 percentage-point higher unemployment rate at ages 25-29 and 0.03 percentage points higher at ages 30-34. The persistence of this … worker who experiences a one-percentage-point higher unemployment rate while the worker is 16-24 years old has a 0 … rigidity is constructed and the index is shown to have positive correlation with the persistence. Moderating macroeconomic …

with a SVAR model by inspecting how unemployment responds to the state of the economy. We show that deviations from Okun …

using a SVAR model by inspecting how unemployment responds to the state of the economy. We show that deviations from Okun …

in German unemployment is fully explained by hysteresis. The Great Recession was well absorbed because both hysteresis …We construct a new Markov-switching unobserved components framework for the analysis of hysteresis effects. Our model … effects and structural unemployment were substantially reduced after institutional reforms. In contrast, U.S. unemployment did …

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 …

We introduce skill decay during unemployment into Blanchard and Gali's (2008) New-Keynesian model with hiring frictions … and real-wage rigidity. Plausible values of quarterly skill decay and realwage rigidity turn the long-run marginal cost-unemployment … relationship positive in a "European" labour market with little hiring but not in a fluid "American" one. If the marginal cost-unemployment …

The persistence of U.S. unemployment has risen with each of the last three recessions, raising the specter that future … rising persistence of unemployment. Second, monetary and fiscal policies can account for only part of the evolving … unemployment persistence. Therefore, we turn to a third class of explanations: propagation mechanisms. We focus on factors …

The persistence of U.S. unemployment has risen with each of the last three recessions, raising the specter that future … rising persistence of unemployment. Second, monetary and fiscal policies can account for only part of the evolving … unemployment persistence. Therefore, we turn to a third class of explanations: propagation mechanisms.We focus on factors …

The persistence of U.S. unemployment has risen with each of the last three recessions, raising the specter that future … rising persistence of unemployment. Second, monetary and fiscal policies can account for only part of the evolving … unemployment persistence. Therefore, we turn to a third class of explanations: propagation mechanisms. We focus on factors …