This 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.
|Titolo:||Unemployment and Productivity in The Long Run: The Role of Macroeconomic Volatility|
|Autori interni:||BENIGNO, PIERPAOLO|
|Data di pubblicazione:||2015|
|Rivista:||THE REVIEW OF ECONOMICS AND STATISTICS|
|Appare nelle tipologie:||01.1 - Articolo su rivista (Article)|