posted on 2005-09-23, 11:10authored byTomas Koegel
An established stylized fact of OECD countries is trendless unemployment over the long run (e.g. over the last century). The present paper derives conditions for trendless unemployment in a model with endogenous technical progress. The results are consistent with earlier findings in a model with exogenous technical progress, but are in sharp contrast to the thesis in Karanassou, M. and Snower, D., 2004. Unemployment invariance. German Economic Review, 5(3), pp. 297-317, in a reduced form model with endogenous technical progress.