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E-book
Author Benigno, Pierpaolo, author.

Title Unemployment and productivity in the long run : the role of macroeconomic volatility / prepared by Pierpaolo Benigno, Luca Antonio Ricci, and Paolo Surico
Published [Washington, D.C.] : International Monetary Fund, ©2010

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Description 1 online resource (49 pages) : color illustrations
Series IMF working paper ; WP/10/259
IMF working paper ; WP/10/259.
Contents Cover Page; Title Page; Copyright Page; Contents; 1. Introduction; Figure 1; 2. The Model; 2.1. Flexible wages; 2.2 Definition of unemployment rate; 2.3 Sticky real wages; 2.3.1 The productivity growth-unemployment trade-off; Figure 2; Figure 3; 2.4 Downward real wage rigidity; 2.4.1 The productivity growth-unemployment trade-off; Figure 4; 3. Evidence for the United States; 3.1 Measuring unemployment and productivity trends; 3.2 The fit of the linear model; Figure 5; 3.3 Controlling for demographics; Table 1. Controlling for demographics; 3.4 The fit of the nonlinear model; Figure 6
4. International evidenceTable 2. Panel regressions; 5. Conclusions; A. The data; Figure 7; Figure 8; B.A stochastic volatility model; C. Convergence; Figure 9; D. The asymmetric real-wage rigidity model; E. The downward real-wage rigidity model; References; Footnotes
Summary We propose a theory of low-frequency movements in unemployment based on asymmetric real wage rigidities. The theory generates two main predictions: long-run unemployment increases with (i) a fall in long-run productivity growth and (ii) a rise in the variance of productivity growth. Evidence based on U.S. time series and on an international panel strongly supports these predictions. The empirical specifications featuring the variance of productivity growth can account for two U.S. episodes which a linear model based only on long-run productivity growth cannot fully explain. These are the decline in long-run unemployment over the 1980s and its rise during the late 2000s
Bibliography Includes bibliographical references
Subject Unemployment.
Industrial productivity.
Macroeconomics.
Industrial productivity
Macroeconomics
Unemployment
Form Electronic book
Author Ricci, Luca Antonio, author.
Surico, Paolo, author.
International Monetary Fund. Research Department, issuing body.
ISBN 128356663X
9781283566636
9781455256891
1455256897
9781455209590
1455209597