The importance of frequency in estimating labour market transition rates

Pedro Gomes

IZA Journal of Labor Economics, 2015, vol. 4, issue 1, 1-10

Abstract: Labour market transition rates are typically estimated using survey data, which are mainly carried out at monthly or quarterly frequency. I argue that rates from surveys at different frequencies are not comparable, even if corrected for time aggregation. I estimate labour market transition rates using monthly and quarterly frequency CPS data. I apply a time-aggregation correction to make them comparable. I find notable differences in terms of levels and volatilities. While the continuous time-aggregation correction does not alter the unemployment decomposition using the monthly survey, it does so when using the quarterly survey. Jel codes: E24; J60 Copyright Gomes; licensee Springer. 2015

Keywords: Job-finding rate; Job-separation rate; Transition rates; Time-aggregation correction; Unemployment decomposition (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (16)

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DOI: 10.1186/s40172-015-0021-9

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