unemployment over the last two decades that persisted beyond the Great Recession. Our structural VAR approach encompasses various … for most of the observed unemployment decline. Wage moderation was most pronounced right after the implementation of Hartz ….e. within the monetary union. In contrast, the muted response of unemployment to the Great Recession was not significantly …

In this paper, we identify demand shocks that can have a permanent effect on output through hysteresis effects. We call … employment and investment, although output per worker is largely unaffected. We find strong evidence that hysteresis transmits … through a rise in long-term unemployment and a decline in labor force participation and disproportionately affects the least …

target and unemployment around a long-run sustainable rate - has been justified as a way of reducing household indebtedness …

The German unemployment rate shows strong signs if non-stationarity over the course of the previous decades. This is in … line with an insider-outsider model under full hysteresis. We applied a "theory-guided view" to the data using the … structural VAR model as developed by Balmaseda, Dolado and López-Salido (2000) allowing for full hysteresis on the labour market …