Empirical tests of labor-market equilibrium: An evaluation

Abstract

For good reason there is widespread professional interest in the theory of unemployment. Unemployment in OECD countries is at an all-time postwar high. The unemployment rate in France has increased each year for the past 14 years. Mean durations of unemployment have increased in the United States over the past decade. The data indicate that measured unemployment is an important fact of economic life. However, the causes of the rise in unemployment are not clearly understood.