Economics, Econometrics and Finance
4 years ago

Rising wage inequality driving longer unemployment spells, study finds.

SSRN Electronic Journal
Why Did the Average Duration of Unemployment Become So Much Longer?
Toshihiko Mukoyama, Ayşegül Şahin

Paper Summary

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The average duration of unemployment has increased over the past thirty years. Changes in the labor force and unemployment insurance policies only partly explain this. A job search model shows that over 70% of the longer unemployment duration is due to increased wage inequality within groups.