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This paper examines the effect of economic crises on structural unemployment  using an Autoregressive Distributed Lags model and accounting for the role of  institutional settings on an unbalanced panel of 30 OECD economies from 1960  to 2006. We found that downturns have, on average, a significant positive  impact on the level of structural unemployment rate. The maximum impact  varies with the severity of the downturn. Institutions (such as employment  protection legislation, average replacement ratio and product market  regulation) influence both the extent of the initial shock and the adjustment  pattern in the aftermath of an economic downturn

How do institutions affect structural unemployment in times of crises?