Marginal Revolution: Insiders, Outsiders and Unemployment

Long-term unemployment is at shockingly high levels which in itself creates a dynamic of persistence because the longer a worker is unemployed the less employable they become

via www.marginalrevolution.com

I've not read the new Cowen and Tabarrok textbooks yet, but if this recent blog post is anything to go by they'll be as good as I'm expecting. Alex makes a very simple argument about labour market flexibility and the problem of hysteresis. He links to some good papers on the subject. Recommended.