On the measurement of mismatch

Carsten Ochsen

Applied Economics Letters, 2009, vol. 16, issue 4, 405-409

Abstract: We use a definition of an equilibrium rate of unemployment as a mismatch indicator. An application of the indicator to nine Organization for Economic Cooperation and Development (OECD) countries leads to diverging results. Most of the considered countries have experienced increasing mismatch in the 1970s and decreasing mismatch in the 1990s. The latter result is somewhat surprising, since mismatch was expected to be increasing in the 1990s. However, the estimates for Germany are against this international trend. Mismatch is not in general lower in countries with a more flexible labour market, but is decreasing in some of the countries which have chosen more flexibility on the labour market.

Date: 2009
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DOI: 10.1080/13504850601018569

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