Long-Term Unemployment: Attached and Mismatched?

David Wiczer

No 2015-42, Working Papers from Federal Reserve Bank of St. Louis

Abstract: In this paper, I quantify the contribution of occupation-specific shocks and skills to unemployment duration and its cyclical dynamics. I quantify specific skills using microdata on wages, estimating occupational switching cost as a function of the occupations' difference in skills. The productivity shocks are consistent with job finding rates by occupation. For the period 1995-2013, the model captures 69.5% of long-term unemployment in the data, while a uniform finding rate delivers only 47.2%. In the Great Recession, the model predicts 72.9% of the long-term unemployment that existed in the data whereas a uniform finding rate would predict 57.8%.

Keywords: Occupational Choice; Human Capital; Unemployment Duration (search for similar items in EconPapers)
JEL-codes: E24 E32 J24 J64 (search for similar items in EconPapers)
Pages: 58 pages
Date: 2015-12-02
New Economics Papers: this item is included in nep-lab and nep-mac
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Citations: View citations in EconPapers (20)

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Working Paper: Long-term Unemployment: Attached and Mismatched? (2013)
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