Decomposing Beveridge curve dynamics by correlated unobserved components

Sabine Klinger () and Enzo Weber

No 201228, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "Between 1979 and 2009, the German labour market moved along a Beveridge curve with changing slope that usually shifted outwards but once inwards. We employ an unobserved components model to simultaneously disentangle permanent and transitory components of matching efficiency and separation rate (shifting parameters) as well as unemployment and vacancies. Cointegration and identification are especially addressed. We find a steady overlay of structural and transitory shocks for both shifts of and movements along the curve. Thereby, the separation rate is more important than matching efficiency and the two are negatively correlated. Labour market tightness is mostly driven by stochastic trends, which leads to permanent rotations of the job creation curve, i. e. movements along the Beveridge curve." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Beveridgekurve; Arbeitslosigkeitsentwicklung; Integrierte Erwerbsbiografien; job turnover; Konjunkturabhängigkeit; labour turnover; matching; offene Stellen; strukturelle Arbeitslosigkeit; Arbeitslosenquote; 1979-2009 (search for similar items in EconPapers)
JEL-codes: C32 E24 E32 J20 J69 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2012
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Related works:
Journal Article: Decomposing Beveridge Curve Dynamics By Correlated Unobserved Components (2016)
Working Paper: Decomposing Beveridge curve dynamics by correlated unobserved components (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:201228

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