Age cohort effects on unemployment in the US: Evidence from the regional level

Carsten Ochsen

No 165, Thuenen-Series of Applied Economic Theory from University of Rostock, Institute of Economics

Abstract: Since the early 1970s, it was argued that shifts from relatively smaller to larger youth cohorts in the labor force raise the unemploy- ment rate. In contrast, Shimer (2001) comes to a contrary conclusion using US state level data. I provide a theoretical framework for local labor markets that considers age cohort differences in labor market characteristics. Using a spatial panel data model and US county level data (2000-2014), the estimates provide strong evidence that aging of the working age population reduces overall unemployment by almost one percentage point. Long-run effects that consider local feedbacks are even larger.

Keywords: Regional Unemployment; Spatial Interactions; Aging; Panel Data; Spatial Model (search for similar items in EconPapers)
JEL-codes: C23 J10 J60 R12 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-age, nep-geo, nep-lab and nep-ure
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Journal Article: Age cohort effects on unemployment in the USA: Evidence from the regional level (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:roswps:165

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