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Unemployment Dynamics in the Nordics: Is there Heterogeneity in the Relative Importance of Ins and Outs?

Oskar Thorleifsson
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Oskar Thorleifsson: University of Warwick

Warwick-Monash Economics Student Papers from Warwick Monash Economics Student Papers

Abstract: Unemployment by sub-group differs in terms of cyclical fluctuations. I examine whether there is heterogeneity in the relative contributions of the inflow and outflow rate to cyclical unemployment variations in the Nordics. The aggregate results suggest that fluctuations in the job-finding rate are a key driver of cyclical unemployment variations, excluding Norway. Despite notable differences in cyclical unemployment by gender, the contributions of ins and outs are roughly similar. However, evidence from Sweden and Denmark suggests that the separation rate is slightly more important for males compared to females. Substantially lower turnover for older workers makes comparison by age less reliable. Evidence from Sweden suggests notable differences by education level and between native- and foreign-born workers.

Keywords: Unemployment dynamics; job-finding rate; job-separation rate; worker heterogeneity JEL Classification: E24; E32; J63; J64 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-ban and nep-mac
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