The Rise in Danish Unemployment: Reallocation or Mismatch?

Karsten Albæk and Henrik Hansen

No 99-15, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: Two key relations in theoretical work on labor market flows are analyzed; the hiring function and the uv-curve. The relations are identified in a cointegrated VAR-model framework. The system comprising unemployment, vacancies and hirings is driven by a stochastic trend in the vacancies, corresponding to the status of vacancies as the driving force in models of labor market flows. The drift in the relations is modeled by smooth transition functions and is identified as increased mismatch problems in the Danish labor market as opposed to increased structural change.

Keywords: hiring function; UV-curve; cointegrated VAR-Model; smooth transition functions; mismatch (search for similar items in EconPapers)
JEL-codes: J41 J61 (search for similar items in EconPapers)
Pages: 21 pages
Date: 1999-07
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: The Rise in Danish Unemployment: Reallocation or Mismatch? (2004)
Working Paper: The Rise in Danish Unemployment: Reallocation or Mismatch?
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Persistent link: https://EconPapers.repec.org/RePEc:kud:kuiedp:9915

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