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Escaping Unemployment Traps

Sunday, November 20, 2016 9:25
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(Before It's News)

from Liberty Street Economics

– this post authored by Sushant Acharya, Julien Bengui, Keshav Dogra, and Shu Lin Wee

Economic activity has remained subdued following the Great Recession. One interpretation of the listless recovery is that recessions inflict permanent damage on an economy’s productive capacity. For example, extended periods of high unemployment can lead to skill losses among workers, reducing human capital and lowering future output.

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