Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/28333
Authors: 
Schreiber, Sven
Year of Publication: 
2009
Series/Report no.: 
Kiel Working Paper 1505
Abstract: 
We investigate the controversial issue whether unemployment is related to productivity growth in the long run, using U.S. data in a framework of infrequent mean shifts. Tests find (endogenously dated) shifts around 1974, 1986, and 1996, system techniques indicate that the shifts are common features, and the implied long-run link between the two variables is negative. Therefore the secular decline of unemployment since the mid 1990s indeed stemmed from higher average productivity growth. The initial and final regimes are essentially equal, thus supporting theories that explain the productivity slowdown by a slow adoption process of IT with associated learning costs.
Subjects: 
Productivity slowdown
growth
NAIRU level
common shifts
JEL: 
E24
C32
O40
Document Type: 
Working Paper

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