[email protected] potential impact of the looming EU accession of Central European economies is unemployment hysteresis working through long-term unemployment (LTU). In this paper, we explore the mechanisms of LTU by providing a detailed description of the recent rise in Czech LTU following the recession of 1997. We place the Czech evidence in international perspective using, e.g., VAR-based simulations, and focus on the role of welfare benefits in driving LTU.http://deepblue.lib.umich.edu/bitstream/2027.42/39883/3/wp498.pd
