The cyclicality of labor-market flows: A multiple-shock approach

Jean-Olivier Hairault and Anastasia Zhutova
Additional contact information
Anastasia Zhutova: Centre de recherche de la Banque de France - Banque de France

Post-Print from HAL

Abstract: In this paper, we aim to establish some stylized facts about the relative contributions of the job-finding and separation rates to unemployment dynamics depending on the nature of structural shocks. The shocks in our Bayesian Structural VAR model are identified using a sign-restriction approach, and capture shifts in the three conditions determining labor-market equilibrium in matching models: the Beveridge curve, and the job-creation and job-destruction conditions. Using both US and French data, we identify an aggregate shock to match profitability (the aggregate-profitability shock), a shock specific to existing jobs (the reallocation shock) and a shock to the efficiency of the matching process (the matching-efficiency shock). We find that the relative contributions of the job finding and separation rates are notably different across shocks in both countries, but are similar across countries for each type of shock. Labor market dynamics appear to be Transatlantic despite well-known institutional differences. However, it must be emphasized that the reaction of the labor market variables to the matching-efficiency shock seems more muted in the US than in France.

Keywords: Unemployment variability; Job separation; Job finding; Bayesian VAR (search for similar items in EconPapers)
Date: 2018-04
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Published in European Economic Review, 2018, 103, pp.150 - 172. ⟨10.1016/j.euroecorev.2018.01.008⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: The cyclicality of labor-market flows: A multiple-shock approach (2018)
Working Paper: The cyclicality of labor-market flows: A multiple-shock approach (2018)
Working Paper: The Cyclicality of Labor Market Flows: A Multiple-Shock Approach (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01802891

DOI: 10.1016/j.euroecorev.2018.01.008

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().