Long-term unemployment and the Great Recession: Evidence from UK stocks and flows
Carl Singleton ()
Edinburgh School of Economics Discussion Paper Series from Edinburgh School of Economics, University of Edinburgh
Long-term unemployment more than doubled during the UK's Great Recession. Only a small fraction of this persistent increase can be explained by the changing composition of the unemployment pool. Aggregate exit rates from unemployment exhibit negative duration dependence. A stocks-flows decomposition, which allows for this fact in a limited way, indicates the importance of participation flows, especially from unemployment to inactivity, in accounting for long-term unemploymentâ€™s recessionary rise. How changes in transition rates contributed to this rise suggests a general shift in the labour force attachment of the long-term unemployed, which cannot be accounted for by observable characteristics.
Keywords: Long-term unemployment; Worker flows; Labour force participation; Great Recession (search for similar items in EconPapers)
JEL-codes: E24 E32 J64 (search for similar items in EconPapers)
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Journal Article: Long‐Term Unemployment and the Great Recession: Evidence from UK Stocks and Flows (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:edn:esedps:273
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