Technology Shocks and Unemployment in the Last Recession


In the latest recession, unemployment rates in the United States increased at a faster pace than in the average OECD country. Since the unemployment rate has been more sensitive to technological shocks in the United States in the past than in other OECD countries, I investigated whether increased sensitivity to such shocks was the reason for the recent relative increase in the U.S. unemployment rate. I find this was not the case.

Federal Reserve Bank of Cleveland Economic Commentary