01835cas a2200265 a 4500 AALejournalIMF006839 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455209590 1018-5941 BD-DhAAL BD-DhAAL Surico, Paolo. Unemployment and Productivity in the Long Run : the Role of Macroeconomic Volatility / Paolo Surico, Luca Ricci, Pierpaolo Benigno. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (49 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet Benigno, Pierpaolo. Ricci, Luca. IMF Working Papers; Working Paper ; No. 2010/259 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/259/001.2010.issue-259-en.xml IMF e-Library