• Priyanka Uppal

Since the crisis of 2007-2009, United States (U.S.) unemployment has remained persistently high, prompting many to believe that structural rather than cyclical reasons were responsible. We investigate whether the natural unemployment rate has risen since the recession started, and whether the underlying reasons are transient or permanent, using a conventional job search and matching framework and empirical data from a variety of labor market variables. Our analyses show that the natural rate has increased over the last several years and our preferred estimate means an increase of about a percentage point from its pre-recession level. An appraisal of the underlying reasons responsible for this rise including labor market failure, increased unemployment benefits, and general economic instability, suggests that only a small part of it is likely to continue.

Beveridge Curve, Labor Market, Structural Unemployment, Mismatch, Unemployment.

"Natural Rate of Unemployment: A Temporary or Constant Phenomenon", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 9, page no.377-381, September 2018, Available :http://www.jetir.org/papers/JETIRFH06062.pdf

"Natural Rate of Unemployment: A Temporary or Constant Phenomenon", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 9, page no. pp377-381, September 2018, Available at : http://www.jetir.org/papers/JETIRFH06062.pdf