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• W4210331448 endingPage "102129" @default.
• W4210331448 startingPage "102129" @default.
• W4210331448 abstract "Strong labor force participation cyclicality during the Covid-19 pandemic has put further into question the capacity of standard Phillips Curve (PC) models to fully capture labor market cyclical conditions. In this paper, we jointly estimate natural unemployment and participation rates (i.e. compatible with constant inflation) through an augmented PC informed by structural labor market flows across employment, unemployment and inactivity. Focusing on Italy we find that, during the pandemic: (i) natural unemployment has remained unchanged, while natural participation has declined slightly, mostly due to a rise in retirement flows driven by a temporary reduction in pension eligibility rules; (ii) virtually all slack was accounted for by the participation margin, which added significant downward pressures to inflation dynamics." @default.
• W4210331448 created "2022-02-08" @default.
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• W4210331448 date "2022-04-01" @default.
• W4210331448 modified "2023-09-26" @default.
• W4210331448 title "Slack and prices during Covid-19: Accounting for labor market participation" @default.
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• W4210331448 doi "https://doi.org/10.1016/j.labeco.2022.102129" @default.
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