Nonlinear Evidence on the Existence of Jobless Recoveries
Abstract
The sluggish growth in employment following the Great Recession has spurred research into investigating its cause. Economists are split as to whether it reflects the advent of “jobless recoveries� or just reflects “slow recoveries� in which both output and employment are slow to recover. The authors estimate a version of Friedman’s plucking model to investigate this issue. Findings show evidence suggesting that employment does have its own dynamic response after a recession. Some of the slow growth in employment can be ascribed to the slow output growth, but there is a remaining portion which is consistent with the jobless recovery hypothesis. The authors then produce evidence relative to four different hypothesis of why jobless recoveries have occurred.
Description
PublicFinanceCollections
Citation
Jansen, Dennis W.; Bradley, Michael D. (2015). Nonlinear Evidence on the Existence of Jobless Recoveries. Private Enterprise Research Center, Texas A&M University; Texas A&M University. Library. Available electronically from https : / /hdl .handle .net /1969 .1 /199402.