A Look at Jobless Recoveries in G7 Countries
48 Pages Posted: 3 Oct 2019
Date Written: September 24, 2019
We study changes in the plucking behavior of employment growth, as well as changes in its relationship with the output cycle in the G7 countries. Using both revised and real-time data, we consider several popular measures of the output cycle. We find evidence in favor of substantial disparities across countries, both in the responses of employment to employment gaps and in the responses of employment to the output cycle. Furthermore, for most countries, we see significant evidence in favor of structural changes in the response coefficients, suggesting much slower recoveries in labor markets, consistent with the jobless recoveries hypothesis.
Keywords: nonlinear business cycles, employment, G7, joblessness, plucking
JEL Classification: E24, E32
Suggested Citation: Suggested Citation