Lost in transition: the costs and consequences of sectoral labour adjustment

Stephen Tapp

Canadian Journal of Economics, 2011, vol. 44, issue 4, 1264-1296

Abstract: This paper uses an equilibrium search and matching model to study Canada's sectoral labour adjustment in 2002-2006 during an increase in global commodity prices and exchange rate appreciation. I estimate economically significant adjustment costs for the aggregate economy in this episode and demonstrate that difficulty in transferring skills between jobs for individual workers can be an important contributor to these aggregate costs. The analysis also demonstrates that the level of unemployment benefits impacts the economy's sectoral composition, its aggregate productivity, and the speed of its adjustment to shocks.

JEL-codes: E2 J6 (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://doi.org/10.1111/j.1540-5982.2011.01674.x (text/html)
access restricted to subscribers

Related works:
Working Paper: Lost In Transition: The Costs And Consequences Of Sectoral Labour Adjustment (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:44:y:2011:i:4:p:1264-1296

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().