A New Approach to the Study of Jobless Recoveries
Fabio Mendez (),
Jared D. Reber () and
Jeremy Schwartz ()
Additional contact information
Jared D. Reber: Department of Economics, Loyola University Maryland, Credit One Bank, 8356 Waylon Ave., Las Vegas,NV 89178, USA
Jeremy Schwartz: Department of Economics, Loyola University Maryland, 4501 N. Charles St., Baltimore, MD 21210-2699, USA
Southern Economic Journal, 2016, vol. 83, issue 2, 573-589
This article is concerned with the measurement of jobless recoveries and the elements that may explain their emergence. We first introduce a measure that maps the various elements that define a jobless recovery into a single number that we label the jobless recovery depth. We then construct a database of 389 state-level observations and study the cross-sectional variations that emerge. We find that jobless recoveries in the United States are not a nation-wide phenomena, but a local event confined within a cluster of states that expands slowly between 1975 and 2015. We find the state-level evidence to be consistent with theories that link jobless recoveries to unusually long expansionary periods, less dynamic labor markets, and the advent of the great moderation. The evidence is not consistent with theories that link them to decreases in union power, increases in income inequality, or increases in health care costs.
JEL-codes: E24 E32 (search for similar items in EconPapers)
References: Add references at CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:sej:ancoec:v:83:2:y:2016:p:573-589
Access Statistics for this article
Southern Economic Journal is currently edited by Laura Razzolini
More articles in Southern Economic Journal from Southern Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Laura Razzolini ().