Unemployment Crises

56 Pages Posted: 15 Feb 2020

See all articles by Nicolas Petrosky-Nadeau

Nicolas Petrosky-Nadeau

Federal Reserve Banks - Federal Reserve Bank of San Francisco

Lu Zhang

Ohio State University - Fisher College of Business; National Bureau of Economic Research (NBER)

Multiple version iconThere are 3 versions of this paper

Date Written: January 2020

Abstract

An equilibrium search model with credible bargaining, when calibrated to the mean and volatility of postwar unemployment rates, is a good start to understanding the unemployment crisis in the Great Depression. Drawing from rarely used data sources, this paper compiles historical monthly time series of U.S. unemployment rates, vacancy rates, and labor productivity, some of which date back to 1890. The frequency, persistence, and severity of the unemployment crises in the model are quantitatively consistent with those in the historical data.

Keywords: Search model of equilibrium unemployment, the Great Depression, the unemployment volatility, economic history, globally nonlinear solution

JEL Classification: E24, E32, J63, J64

Suggested Citation

Petrosky-Nadeau, Nicolas and Zhang, Lu, Unemployment Crises (January 2020). Journal of Monetary Economics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3523512 or http://dx.doi.org/10.2139/ssrn.3523512

Nicolas Petrosky-Nadeau

Federal Reserve Banks - Federal Reserve Bank of San Francisco ( email )

101 Market Street
San Francisco, CA 94105
United States

Lu Zhang (Contact Author)

Ohio State University - Fisher College of Business ( email )

2100 Neil Avenue
Columbus, OH 43210-1144
United States
585-267-6250 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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