Others contend that economies typically recover slowly from a financial crisis. See Carmen M. Reinhart and Kenneth S. Rogoff, This Time Is Different: Eight Centuries of Financial Folly (Princeton, NJ: Princeton University Press, 2009), p. 61.
 Heritage Foundation calculations using data from U.S. Department of Labor, Bureau of Labor Statistics, “The Employment Report,” Table B-1, in Data Link Express, Haver Analytics.
 James Sherk, “Not Looking for Work: Why Labor Force Participation Has Fallen During the Recession,” Heritage Foundation Backgrounder No. 2722, September 5, 2013, http://www.heritage.org/research/reports/2013/09/not-looking-for-work-why-labor-force-participation-has-fallen-during-the-recession.
 Salim Furth, “Questions Raised by the CBO Report,” Heritage Foundation Issue Brief No. 3848, February 5, 2013, http://www.heritage.org/research/reports/2013/02/response-to-the-cbo-s-budget-and-economic-outlook-report.
 U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts, 2007 Q4–2013 Q2.
 Some economists add “frictional” unemployment as a category, but its distinction is mainly in degree rather than kind. Frictional unemployment is what is left over even in the most booming job market as workers take time to transition from one job to another.
 We use the term demand-side because “cyclical” can have some ambiguity.
 Some might find it hard to believe that an unemployed person would ever choose to remain unemployed instead of taking an available job. However, job choices are like other life choices: one considers the alternatives. Young people regularly weigh the value and enjoyment of remaining in school against the benefits and leisure costs of the jobs available. Older workers choose to retire earlier or later depending on whether their pay and job satisfaction outweigh the income and leisure that they can expect in retirement.
 Alan Krueger and Bruce Meyer, “Labor Supply Effects of Social Insurance,” in Alan Auerbach and Martin Feldstein, eds., Handbook of Public Economics, Vol. 4 (2002), pp. 2327–2392.
 Both supply-side and mismatch unemployment are often called “structural,” a term that has at least five definitions. Conversely, measured matching is “highly procyclic,” hence the ambiguity in the phrase “cyclical unemployment.” Edward Lazear and James Spletzer, “The United States Labor Market: Status Quo or a New Normal?” National Bureau of Economic Research Working Paper No. 18386, September 2012, pp. 1–3 and 20, http://www.nber.org/papers/w18386 (accessed October 3, 2013).
 For example, the health care sector has grown throughout the recession while construction employment plummeted, but unemployed construction workers cannot work as hospital technicians without extensive retraining.
 Lazear and Spletzer, “The United States Labor Market: Status Quo or a New Normal?” p. 23.
 Peter Diamond, “Cyclical Unemployment, Structural Unemployment,” National Bureau of Economic Research Working Paper No. 18761, February 2013, pp. 24–34, http://dl.kli.re.kr/dl_image/IMG/03/000000013185/SERVICE/000000013185_01.PDF (accessed October 15, 2013).
 Richard Crump and Aysegul Sahin, “Skills Mismatch, Construction Workers, and the Labor Market,” The Federal Reserve Bank of New York, Liberty Street Economics, March 29, 2012, http://libertystreeteconomics.newyorkfed.org/2012/03/skills-mismatch-construction-workers-and-the-labor-market.html (accessed October 3, 2013).
 Daniel Aaronson and Jonathan Davis, “How Much Has House Lock Affected Labor Mobility and the Unemployment Rate?” Federal Reserve Bank of Chicago, Chicago Fed Letter, September 2011, http://www.chicagofed.org/webpages/publications/chicago_fed_letter/2011/september_290.cfm (accessed October 3, 2013).
 Aysegul Sahin, Joseph Song, Giorgio Topa, and Giovanni L. Violante, “Mismatch Unemployment,” Federal Reserve Bank of New York Staff Report No. 566, June 2013, http://www.newyorkfed.org/research/staff_reports/sr566.html (accessed October 3, 2013).
 For example, see Christina D. Romer, “Back to a Better Normal: Unemployment and Growth in the Wake of the Great Recession,” speech at Princeton University, April 17, 2010, http://online.wsj.com/public/resources/documents/RomerSpeechPrinceton0417.pdf (accessed October 3, 2013).
 Heritage Foundation calculations using data from the Department of Labor, Bureau of Labor Statistics, “The Employment Situation,” Table B-1, in Data Link Express, Haver Analytics.
 Atif Mian and Amir Sufi, “What Explains High Unemployment? The Aggregate Demand Channel,” National Bureau of Economic Research Working Paper No. 17830, February 2012.
 U.S. Department of Commerce, Bureau of Economic Analysis, “GDP Press Release,” Table 3, in Data Link Express, Haver Analytics. In 2009 dollars, GDP rose from $15.00 trillion in Q4 of 2007 to $15.68 trillion in Q2 of 2013, a 4.6 percent increase.
 Ibid. In current dollars, the economy has expanded from $14.69 trillion to $16.67 trillion, a 13.5 percent increase.
 U.S. Department of Commerce, Bureau of the Census, “Advance data from the Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations,” in Data Link Express, Haver Analytics. Inflation adjusted using the PCE (personal consumption expenditures) deflator.
 Heritage Foundation calculations using data from U.S. Department of Commerce, Bureau of Economic Analysis, GDP Press Release, Tables 9 and 12 in Data Link Express, Haver Analytics. The profits of domestic corporations were 12.0 percent of national income in Q3 of 2006, fell to a low of 5.5 percent in Q4 of 2008, and rebounded to 11.7 percent in Q2 of 2013. Total corporate profits as a share of national income, including profits generated overseas, have slightly increased beyond pre-recession rates. However, profits generated overseas are largely not relevant to decisions on whether to expand domestically.
 Casey Mulligan, The Redistribution Recession (New York: Oxford University Press, 2012), pp. 23–25.
 Sherk, “Not Looking for Work.”
 Not all unverifiable conditions are fraudulent, but the fact that unverifiable conditions account for a rapidly rising share of the “disabled” strains credulity. Avik Roy, “How Americans Game the $200 Billion-a-Year ‘Disability-Industrial Complex,’” Forbes, April 8, 2013, http://www.forbes.com/sites/theapothecary/2013/04/08/how-americans-game-the-200-billion-a-year-disability-industrial-complex/ (accessed October 3, 2013), and Sherk, “Not Looking for Work.”
 Ibid. These are not mutually exclusive. Labor force participation can fall because of demand weakness at the same time that an independent reduction in labor force participation further reduces hiring.
 This can be easily seen from the labor market consequences of summer break. The supply of high school and college students available to work surges every summer and drops in the fall when classes resume. This increase leads employers to increase hiring. Even during the recession, the summer increase in labor supply leads to a large increase in (not seasonally adjusted) employment. See Mulligan, The Redistribution Recession, pp. 213–230.
 U.S. Department of Labor, Bureau of Labor Statistics, “Job Openings and Labor Turnover Survey,” 2007–2013. Between December 2007 and July 2009, the number of monthly job openings dropped from 3.87 million to 2.03 million—a 47 percent decrease. These figures are a three-month moving average to smooth out variation due to sampling error.
 Ibid. The Job Openings and Labor Turnover Survey (JOLTS) reported 3.40 million job openings in August 2013. This figure is also a three-month moving average.
 Ibid. The JOLTS reported monthly hiring falling from 4.67 million to 3.50 million between December 2007 and July 2009, rising to 4.13 million in August 2013. Figures are three-month moving averages.
 Rand Ghayad and William Dickens, “What Can We Learn by Disaggregating the Unemployment-Vacancy Relationship?” Federal Reserve Bank of Boston, Public Policy Briefs No. 12-3, October 2012, http://www.bostonfed.org/economic/ppb/2012/ppb123.pdf (accessed October 3, 2013). Simple skill depreciation cannot explain this shift. Both skill depreciation and composition bias—the fact that the pool of long-term unemployed contains more people with low job-finding rates—explain why the long-term unemployed find jobs at lower rates than the short-term unemployed. However, unless skill depreciation or composition bias have significantly changed over the past six years, they cannot explain why the Beveridge Curve for long-term unemployed itself has shifted.
 Kory Kroft, Fabian Lange, and Matthew J. Notowidigdo, “Duration Dependence and Labor Market Conditions: Theory and Evidence from a Field Experiment,” National Bureau of Economic Research Working Paper No. 18387, September 2012.
 Ghayad and Dickens, “What Can We Learn by Disaggregating the Unemployment-Vacancy Relationship?” p. 6.
 Dean Baker, “The Beveridge Curve and Structural Unemployment,” Center for Economic and Policy Research, January 1, 2013, http://www.cepr.net/index.php/blogs/cepr-blog/the-beveridge-curve-and-structural-unemployment (accessed September 20, 2013).
 The maximum duration is 73 weeks in states with unemployment above 9 percent.
 Casey B. Mulligan, “The ARRA: Some Unpleasant Welfare Arithmetic,” National Bureau of Economic Research Working Paper No. 18591, December 2012, and Casey B. Mulligan, “Recent Marginal Labor Income Tax Rate Changes by Skill and Marital Status,” Tax Policy and the Economy, Vol. 27, No. 1 (2013), pp. 69–100.
 Casey Mulligan, “More Spending, Less Real Help: How Today’s Fragmented Welfare System Fails to Lift Up Poor Families,” testimony before the Subcommittee on Human Resources Hearing, Committee on Ways and Means, U.S. House of Representatives, June 18, 2013, http://waysandmeans.house.gov/uploadedfiles/casey_mulligan_testimony_hr061813.pdf (accessed October 3, 2013).
 Casey Mulligan, “Work Incentives, the Recovery Act, and the Economy,” testimony before the Subcommittee on Economic Growth, Job Creation and Regulatory Affairs, Committee on Oversight and Government Reform, U.S. House of Representatives, February 14, 2013, http://www.policyuncertainty.com/app/Mulligan-Testimony.pdf (accessed October 3, 2013).
 David Autor and Mark Duggan, “The Growth in the Social Security Disability Rolls: A Fiscal Crisis Unfolding,” Journal of Economic Perspectives, Vol. 20, No. 3 (Summer 2006), pp. 71–96; Jonathan Gruber and David A. Wise, introduction, in Jonathan Gruber and David A. Wise, eds., Social Security and Retirement Around the World (Chicago: University of Chicago Press, 1999), pp. 1–35, http://www.nber.org/chapters/c7247.pdf (accessed October 7, 2013); Hilary Hoynes and Diane Schanzenbach, “Work Incentives and the Food Stamp Program,” Journal of Public Economics, Vol. 96, Nos. 1–2 (February 2012), pp. 151–162; Alan Krueger and Bruce Meyer, “Labor Supply Effects of Social Insurance,” in Alan Auerbach and Martin Feldstein, eds., Handbook of Public Economics, Vol. 4 (2002), pp. 2327–2392; and Aaron S. Yelowitz, “Evaluating the Effects of Medicaid on Welfare and Work: Evidence from the Past Decade,” Employment Policies Institute, 2000, http://www.epionline.org/study/r33/ (accessed October 3, 2013).
 Mulligan, “Recent Marginal Labor Income Tax Rate Changes by Skill and Marital Status,” Figure 9.
 Mulligan, The Redistribution Recession, p. 263.
 Although employers formally pay the employer mandate, employees will pay much of this tax in the form of reduced wages, unless they are already earning the minimum wage so their pay cannot be legally reduced. Employers cannot deduct the penalty/tax from business expenses for tax purposes. As a result, the $2,000 penalty will have the same effect on after-tax profits as a $3,046 reduction in wages. See Casey Mulligan, “Why a $2,000 Employer Penalty Is Really $3,046,” Supply and Demand (in That Order), March 13, 2013, http://caseymulligan.blogspot.com/2013/03/why-2000-employer-penalty-is-really-3046.html (accessed October 3, 2013).
 Casey Mulligan, “Average Marginal Labor Income Tax Rates Under the Affordable Care Act,” National Bureau of Economic Research Working Paper No. 19365, August 2013.
 Mulligan, “Work Incentives, the Recovery Act, and the Economy.”
 Congressional Budget Office, “Budget and Economic Outlook: An Update,” August 2010, http://cbo.gov/publication/21670 (accessed October 3, 2013). A 0.5 percentage point reduction in labor force participation translates into 800,000 fewer workers.
 Noah Smith, “Real Wages and the Great Vacation: Casey Mulligan Responds,” Not Quite Noahpinion, December 25, 2011, http://noahpinionblog.blogspot.com/2011/12/wages-and-great-vacation-casey-mulligan.html (accessed October 3, 2013), and Paul Krugman, “Soup Kitchens Caused the Great Depression,” The New York Times, November 3, 2012, http://krugman.blogs.nytimes.com/2012/11/03/soup-kitchens-caused-the-great-depression/ (accessed October 3, 2013).
 U.S. Department of Labor, “The Employment Report,” Table B-3.
 Technically, labor demand has a greater elasticity with respect to wage rates than labor supply does. See George Borjas, Labor Economics, 3rd ed. (Columbus, OH: McGraw-Hill, 2005), pp. 46 and 123–124. This implies the above result.
 Casey Mulligan, “Modern Wage Economics: Too Subtle for the Blogosphere?” Supply and Demand (in That Order), May 8, 2013, http://caseymulligan.blogspot.com/2013/05/modern-wage-economics-too-subtle-for.html (accessed October 3, 2013).
 Esa Eslami, Kai Filion, and Mark Strayer, “Characteristics of Supplemental Nutrition Assistance Program Households: Fiscal Year 2010,” U.S. Department of Agriculture, Food and Nutrition Service, Office of Research and Analysis, September 2011.
 Robert Rector, “Welfare Work Requirements: Vague Replacement of Work for Welfare,” Heritage Foundation Issue Brief No. 3715, September 4, 2012, http://www.heritage.org/research/reports/2012/09/welfare-work-requirements-vague-replacement-of-work-for-welfare.
 For example, see Bruce Bartlett, “It’s the Aggregate Demand, Stupid,” The New York Times, August 16, 2011, http://economix.blogs.nytimes.com/2011/08/16/its-the-aggregate-demand-stupid/ (accessed October 3, 2013), and Paul Krugman, “Years of Tragic Waste,” The New York Times, September 5, 2013, http://www.nytimes.com/2013/09/06/opinion/krugman-years-of-tragic-waste.html (accessed September 6, 2013).