Unemployment Dynamics across OECD Countries Ravi Balakrishnan London School of Economics, CEP Claudio Michelacci CEMFI Working Paper No. 9806 December 1998 We are particularly indebted to Charlie Bean, Chris Pissarides and an anonymous referee for very useful suggestions and thorough readings. We also thank Alan Manning, Danny Quah and Etienne Wasmer for very useful conversations as well as the participants in seminars at the Centre for Economic Performance and at the LSE. Last and certainly not least we would like to thank Michael Burda and Charles Wyplosz for making available their data. The usual disclaimer applies. (E-mail addresses: c.michelacci@cem….es, r.balakrishnan@lse.ac.uk). CEMFI, Casado del Alisal 5, 28014 Madrid, Spain. Tel: 34 91 4290551, fax: 34 91 4291056, www.cem….es.