The NAIRU as a Theory of Equilibrium Unemployment

Abstract

Assesses the NAIRU framework for analysing the determinants of equilibrium unemployment, as expressed in Layard, Nickell and Jackman′s Unemployment: Macroeconomic Performance and the Labour Market. It is argued that the NAIRU has produced many useful insights regarding the effects of socio‐economic factors on wage determination, but has not produced a plausible account of the determination of equilibrium unemployment.

Citation

Cross, R. (1993), "The NAIRU as a Theory of Equilibrium Unemployment", Journal of Economic Studies, Vol. 20 No. 1/2. https://doi.org/10.1108/EUM0000000000168