What Is Behind the Rise in Long-Term Unemployment?
Daniel Aaronson, Bhash Mazumder, Shani Schechter
This article analyzes what is behind the recent unprecedented rise in long-term unemployment and explains what this rise might imply for the economy going forward. In particular, the authors attribute the sharp increase in unemployment duration in 2009 to especially weak labor demand and, to a lesser degree, extensions in unemployment insurance benefits.
