Publication
Sep 2007
This paper assesses three fundamental views of the labor market regarding movements in unemployment: the frictionless equilibrium view; the chain reaction or prolonged adjustment view; and the hysteresis view. It examines the problems faced by these conceptions in explaining the diversity of labor market experiences across the OECD labor markets. The authors argue that the prolonged adjustment view can overcome these problems since it implies that the short, medium and long runs are interrelated.
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English (PDF, 33 pages, 350 KB) |
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Author | Marika Karanassou, Hector Sala, Dennis Snower |
Series | Kiel Institute Working Papers |
Issue | 1378 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2007 Kiel Institute for the World Economy |