Topic updates
New evidence on labour market hysteresis
25th August 2016
The longer you're unemployed, the less likely you are to find a job.
This article - first published in the Federal Reserve Bank of New York’s Liberty Street Economics blog looks at some of the root causes of the steep decline in the probability of finding a job as the duration of time out of work increases. To what extent can employer discrimination based around the perceived loss of employable skills account for some of the reduction in employment probability? Either way, long term structural unemployment remains a key focus for supply-side policies designed to bring down the natural rate of unemployment.
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