Unemployment Dynamics in the OECD
Michael Elsby,
Bart Hobijn and
Aysegul Sahin
No 11-159/3, Tinbergen Institute Discussion Papers from Tinbergen Institute
Abstract:
We provide a set of comparable estimates for the rates of inflow to and outflow fromunemployment using publicly available data for fourteen OECD economies. We thendevise a method to decompose changes in unemployment into contributions accountedfor by changes in inflow and outflow rates for cases where unemployment deviates fromits flow steady state, as it does in many countries. Our decomposition reveals thatfluctuations in both inflow and outflow rates contribute substantially to unemploymentvariation within countries. For Anglo-Saxon economies we find approximately a 15:85inflow/outflow split to unemployment variation, while for Continental European andNordic countries, we observe much closer to a 45:55 split. Using the estimated flowrates we compute gross worker flows into and out of unemployment. In all economieswe observe that increases in inflows lead increases in unemployment, whereas outflows lag a ramp up in unemployment.
Keywords: Unemployment; Worker flows; Job Finding Rate; Separation Rate (search for similar items in EconPapers)
JEL-codes: E24 J6 (search for similar items in EconPapers)
Date: 2011-11-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)
Downloads: (external link)
https://papers.tinbergen.nl/11159.pdf (application/pdf)
Related works:
Journal Article: Unemployment Dynamics in the OECD (2013) 
Working Paper: Unemployment dynamics in the OECD (2009) 
Working Paper: Unemployment Dynamics in the OECD (2008) 
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:tin:wpaper:20110159
Access Statistics for this paper
More papers in Tinbergen Institute Discussion Papers from Tinbergen Institute Contact information at EDIRC.
Bibliographic data for series maintained by Tinbergen Office +31 (0)10-4088900 ().