The Labor Market Four Years into the Crisis: Assessing Structural Explanations

50 Pages Posted: 31 Mar 2012 Last revised: 3 Feb 2023

See all articles by Jesse Rothstein

Jesse Rothstein

University of California, Berkeley, The Richard & Rhoda Goldman School of Public Policy; University of California, Berkeley, College of Letters & Science, Department of Economics; National Bureau of Economic Research (NBER)

Date Written: March 2012

Abstract

Four years after the beginning of the Great Recession, the labor market remains historically weak. Many observers have concluded that "structural" impediments to recovery bear some of the blame. This paper reviews such structural explanations. I find that there is little evidence supporting these hypotheses, and that the bulk of the evidence is more consistent with the hypothesis that continued poor performance is primarily attributable to shortfalls in the aggregate demand for labor.

Suggested Citation

Rothstein, Jesse, The Labor Market Four Years into the Crisis: Assessing Structural Explanations (March 2012). NBER Working Paper No. w17966, Available at SSRN: https://ssrn.com/abstract=2031975

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