The Macroeconomic Consequences of Long‐Term Unemployment

Paul Flatau, Philip E.T. Lewis, Allison Rushton

Research output: Contribution to journalArticlepeer-review

12 Citations (Scopus)


This article examines the linkages between long‐term unemployment and two important recent debates in Australia: first, whether unemployment exhibits hysteresis tendencies; second, the nature of the relationship between unemployment and real wages. Our findings favour the hysteresis account in that the evidence rejects an equilibrium relationship between long‐term and total unemployment. Also, the effect on real wages of an increase in the number of longterm unemployed is found to be both positive and significant. Copyright © 1991, Wiley Blackwell. All rights reserved
Original languageEnglish
Pages (from-to)48-56
Number of pages9
JournalAustralian Economic Review
Issue number4
Publication statusPublished - 1991


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