Each will now be briefly summarised since they provide some insights into the influence of policy settings on the degree of hysteresis affecting labour input. In the first step, historical data are used to estimate simple dynamic regressions relating the level of long-term unemployment to the contemporaneous (overall) unemployment rate and first and second lags of both unemployment variables (i.e. the overall and long-term unemployment rates). These equations - which are estimated on a country-by-country basis to make allowance for differences across national labour markets in the extent to which a sustained increase in overall unemployment raises long-term unemployment - are then used to translate projected changes in the unemployment rate into projections of long-term unemployment. The second step is to convert the projected changes in long-term unemployment into changes in structural unemployment.