**Gabriel P. Mathy**: _[Hysteresis and Persistent Long-Term Unemployment: the American Beveridge Curve of the Great Depression and World War II](https://www.readcube.com/articles/10.1007/s11698-016-0158-1)_: "The stigma of a long unemployment spell made reentering employment difficult even during the brisk economic recovery, which lead to unemployment hysteresis and persistently high joblessness... >...Unemployment figures disaggregated by duration confirm the importance of hysteresis for the Great Depression, as the long-term unemployed were less likely to return to gainful employment until the war. Using the theoretical framework of the Beveridge Curve, I find that hysteresis was a significant problem during the 1930s, but that the essentially unlimited labor demand during the World War II provided jobs even to the long-term unemployed.As a result, labor market conditions in the 1950s resembled those of the 1920s prior to the Depression, and so the labor market scars of the Great Depression were healed.... ---- #shouldread
Brad DeLong,
Gabriel P. Mathy: Hysteresis and Persistent Long-Term Unemployment: the American Beveridge Curve of the Great Depression and…