@techreport{Henry1999Adjustment,
abstract = {This paper challenges what is the standard account of UK unemployment, namely that the
major swings in unemployment over the past 25 years are due predominantly to movements
in the underlying empirical \textquotedblleft{}natural rate of unemployment\textquotedblright{} (NRU). Our analysis suggests that
the British NRU has remained reasonable stable through time and that the medium-run
swings in unemployment are due, instead, to very prolonged after-effects of persistent
(transitory but long-lasting) shocks. We argue that (a) past UK labour market shocks have
prolonged after-effects on unemployment due to interactions among different lagged
adjustment processes in the labour market, (b) many of the important shocks that have hit
the UK labour market over the past 25 years have been persistent, and (c) the persistence of
the shocks is complementary to the persistence of the lagged adjustment processes in
generating movements of UK unemployment.},
address = {Bonn},
author = {Brian Henry and Marika Karanassou and Dennis J. Snower},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {J64; E30; E37; J32; J60; 330; Unemployment; Natural rate hypothesis; Labour markets; Employment; Adjustment costs},
language = {eng},
number = {75},
publisher = {IZA},
title = {Adjustment dynamics and the natural rate: An account of UK unemployment},
type = {Discussion paper series / Forschungsinstitut zur Zukunft der Arbeit},
url = {http://hdl.handle.net/10419/2382},
year = {1999}
}
