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

• Autores: Pierpaolo Benigno, Luca Antonio Ricci, Paolo Surico
• Localización: The Review of economics and statistics, ISSN 0034-6535, Vol. 97, Nº 3, 2015, págs. 698-709
• Idioma: inglés
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• Resumen

  • 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