A general methodology to measure labour market dynamics

Davide Fiaschi and Cristina Tealdi

Papers from arXiv.org

Abstract: We propose a general methodology to measure labour market dynamics, inspired by the search and matching framework, based on the estimate of the transition rates between labour market states. We show how to estimate instantaneous transition rates starting from discrete time observations provided in longitudinal datasets, allowing for any number of states. We illustrate the potential of such methodology using Italian labour market data. First, we decompose the unemployment rate fluctuations into inflow and outflow driven components; then, we evaluate the impact of the implementation of a labour market reform, which substantially changed the regulations of temporary contracts.

Date: 2021-04
New Economics Papers: this item is included in nep-mac
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http://arxiv.org/pdf/2104.01097 Latest version (application/pdf)

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Working Paper: A General Methodology to Measure Labour Market Dynamics (2021)
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