PSST and long-term unemployment

posted by
June 8, 2011
by Arnold Kling  
Posted in Commentary

"I can imagine that it was easier during the Great Depression for unemployment spells to be shorter than they are today. Back then, whatever jobs there were often required manual labor, and work could be given on a temporary basis. So, you might be unemployed for a few months, have a job for a few months, then be unemployed again, etc. Today, jobs require more skills and more on-the-job training. The fixed costs of hiring a worker are more significant. Therefore, fewer short-term jobs are being created." (06/08/11)  

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