The paper discusses how unemployment can be influenced by factors like wage norms and capital accumulation, rather than just labor market institutions. It suggests that the level of demand for labor and inflation can be affected by different factors than traditionally thought. The researchers argue that social norms in wage bargaining and the effects of capital accumulation can lead to persistent unemployment rates. They also propose that capital investment plays a bigger role in determining unemployment levels than labor market policies. In the short term, unemployment is influenced by demand, while in the medium term, the natural rate of unemployment can change based on actual unemployment levels.