The Unemployment Gap

Last Updated Jan 18, 2010 3:06 PM EST

The dream has not yet been fully realized (the figures show unemployment rates, click on figures for larger, clearer versions):





It's not just the levels that differ, there is also a big difference in the variance of the two series (an indicator of the risk that a household will face changes in income due to unemployment spells).
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    Mark Thoma is a macroeconomist and time-series econometrician at the University of Oregon. His research focuses on how monetary policy affects the economy, and he has also worked on political business cycle models. Mark is currently a fellow at The Century Foundation.