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The slow recovery of the U.S. economy, specifically, the slow decline in the U.S. unemployment rate, raises the following question. Is it possible to design labor market policies that might actually cause unemployed workers to find jobs more quickly, thereby reducing the unemployment rate? Economists Jun Nie and Ethan Struby examine this question, studying labor market policies in selected OECD countries. They find evidence that there are policies that are effective in reducing the unemployment rate.

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