Unemployment and productivity in the long run : the role of macroeconomic volatility /

The paper presents a new empirical regularity between the volatility of productivity growth and long-run unemployment, for a given level of long-run productivity growth. A theoretical framework based on asymmetric real wage rigidities is shown to have the potential to rationalize this finding. The m...

Ausführliche Beschreibung

Hauptverfasser:

Benigno, Pierpaolo, Ricci, Luca Antonio, Surico, Paolo

Format:

Elektronisch E-Book

Sprache:

Englisch

Veröffentlicht:

Cambridge, Massachusetts : National Bureau of Economic Research, 2010.

Zusammenfassung:

The paper presents a new empirical regularity between the volatility of productivity growth and long-run unemployment, for a given level of long-run productivity growth. A theoretical framework based on asymmetric real wage rigidities is shown to have the potential to rationalize this finding. The model tends to fit U.S. long-run unemployment better than a specification based on long-run productivity growth only, especially during the Great Moderation and the Great Recession.

Umfang:

1 online resource (46 pages) : illustrations.

Schlagworte:

Industrial productivity.

Unemployment.