Labor Reallocation and Unemployment Fluctuations: A Tale of Two Tails

Dimitrios Bakas, Theodore Panagiotidis and Gianluigi Pelloni

Working Paper series from Rimini Centre for Economic Analysis

Abstract: This paper examines the sectoral shifts hypothesis for the US regional labor market using a quantile panel framework. We use a monthly panel dataset that spans over 1990-2016 for the 48 US states and employ a dynamic quantile panel data regression approach to investigate the asymmetric nature of the relationship between sectoral labor reallocation and unemployment fluctuations. The empirical evidence suggests that the impact of the employment dispersion index is relatively small and insignificant for lower levels of unemployment but becomes positive and highly significant for higher rates. Our findings bear out the asymmetry of reallocation disturbances for the US labor market.

Keywords: Unemployment; Labor Reallocation; Sectoral Shifts; Dynamic Panel Data; Quantile Regression (search for similar items in EconPapers)
JEL-codes: C22 C23 E24 E32 J21 R23 (search for similar items in EconPapers)
Date: 2023-05
New Economics Papers: this item is included in nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://rcea.org/RePEc/pdf/wp23-07.pdf

Related works:
Journal Article: Labour reallocation and unemployment fluctuations: A tale of two tails (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:rim:rimwps:23-07

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