|
Showing 1 - 2 of
2 matches in All Departments
This paper presents a framework to interpret movements in the
Beveridge curve and analyze unemployment fluctuations. We decompose
the unemployment rate into three main components: (1) a component
driven by changes in labor demand--movements along the Beveridge
curve and shifts in the Beveridge curve due to layoffs--(2) a
component driven by changes in labor supply--shifts in the
Beveridge curve due to quits, movements in-and-out of the labor
force and demographics--and (3) a component driven by changes in
the efficiency of matching unemployed workers to jobs. We find that
cyclical movements in unemployment are dominated by changes in
labor demand, but that changes in labor supply due to movements
in-and-out of the labor force also play an important role. Further,
cyclical changes in labor demand lead cyclical changes in labor
supply. Changes in matching efficiency generally play a small role
but can decline substantially in recessions. At low-frequencies,
labor demand displays no trend, and changes in labor supply explain
virtually all of the secular trend in unemployment since 1976.
|
You may like...
It: Chapter 1
Bill Skarsgård
Blu-ray disc
R111
Discovery Miles 1 110
|
Email address subscribed successfully.
A activation email has been sent to you.
Please click the link in that email to activate your subscription.