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Potential causes and implications of the rise in long-term unemployment

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  • Andreas Hornstein
  • Thomas A. Lubik
  • Jessie Romero

Abstract

Long-term unemployment rose dramatically during the recent recession and remains elevated. A primary cause may be the fact that more workers with inherently low job finding rates have become unemployed. This would suggest that the natural rate of unemployment has increased, and that additional monetary stimulus may have only a limited effect on reducing unemployment.

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Bibliographic Info

Article provided by Federal Reserve Bank of Richmond in its journal Richmond Fed Economic Brief.

Volume (Year): (2011)
Issue (Month): Sep ()
Pages:

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Handle: RePEc:fip:fedreb:y:2011:i:sep:n:11-9

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Related research

Keywords: Labor market ; Unemployment ; Recessions ; Monetary policy;

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