The Effect Of Shocks To Labour Market Flows On Unemployment And Participation Rates

Author : Robert Dixon,Guay C. Lim,Jan C. van Ours
Publisher : Unknown
Page : 0 pages
File Size : 48,8 Mb
Release : 2014
Category : Labor economics
ISBN : OCLC:1399120156

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The Effect of Shocks to Labour Market Flows on Unemployment and Participation Rates by Robert Dixon,Guay C. Lim,Jan C. van Ours Pdf

This paper presents an analysis of labour market dynamics, in particular of flows in the labour market and how they interact and affect the evolution of unemployment rates and participation rates, the two main indicators of labour market performance. Our analysis has two special features. First, apart from the two labour market states - employment and unemployment - we consider a third state - out of the labour force. Second, we study net rather than gross flows, where net refers to the balance of flows between any two labour market states. Distinguishing a third state is important because the labour market flows to and from that state are quantitatively important. Focussing on net flows simplifies the complexity of interactions between the flows and allows us to perform a dynamic analysis in a structural vector-autoregression framework. We find that a shock to the net flow from unemployment to employment drive the unemployment rate and the participation rate in opposite directions while a shock to the net flow from not in the labour force to unemployment drives the rates in the same direction.

Author : Laurence M. Ball,Mr.Daniel Leigh,Mr.Prakash Loungani
Publisher : International Monetary Fund
Page : 40 pages
File Size : 48,6 Mb
Release : 2013-01-14
Category : Business & Economics
ISBN : 9781475585742

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Okun's Law by Laurence M. Ball,Mr.Daniel Leigh,Mr.Prakash Loungani Pdf

This paper asks how well Okun’s Law fits short-run unemployment movements in the United States since 1948 and in twenty advanced economies since 1980. We find that Okun’s Law isa strong and stable relationship in most countries, one that did not change substantiallyduring the Great Recession. Accounts of breakdowns in the Law, such as the emergence of“jobless recoveries,” are flawed. We also find that the coefficient in the relationship—the effect of a one percent change in output on the unemployment rate—varies substantially across countries. This variation is partly explained by idiosyncratic features of national labormarkets, but it is not related to differences in employment protection legislation.

Author : Simon M. Burgess,Hélène Turon
Publisher : Unknown
Page : 80 pages
File Size : 46,6 Mb
Release : 2000
Category : Employment re-entry
ISBN : UVA:X006101698

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Unemployment Dynamics, Duration and Equilibrium by Simon M. Burgess,Hélène Turon Pdf

Author : Mai Dao,Davide Furceri,Mr.Prakash Loungani
Publisher : International Monetary Fund
Page : 38 pages
File Size : 45,7 Mb
Release : 2014-02-11
Category : Business & Economics
ISBN : 9781475598599

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Regional Labor Market Adjustments in the United States and Europe by Mai Dao,Davide Furceri,Mr.Prakash Loungani Pdf

We examine patterns of regional adjustments to shocks in the US during the past 40 years. Using state-level data, we estimate the dynamic response of regional employment, unemployment, participation rates and net migration to state-relative labor demand shocks. We find that (i) the long-run effect of a state-specific shock on the state employment level has decreased over time, suggesting less overall net migration in response to a regional shock, (ii) the role of the participation rate as absorber of regional shocks has increased, (iii) the response of net migration to regional shocks is stronger, while that of relative unemployment is weaker during aggregate downturns, and (iv) the change in the response intensity of migration is related to the declining trend in regional dispersion of labor market conditions. Finally, using regional data for a set of 21 European countries, we show that while the short-term response of participation rates to labor demand shocks is typically larger in Europe than in the US, the immediate response of net migration in Europe has increased over time.

Author : Sangyup Choi,Mr.Prakash Loungani
Publisher : International Monetary Fund
Page : 26 pages
File Size : 53,9 Mb
Release : 2015-02-23
Category : Business & Economics
ISBN : 9781498356305

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Uncertainty and Unemployment by Sangyup Choi,Mr.Prakash Loungani Pdf

We study the role of uncertainty shocks in explaining unemployment dynamics, separating out the role of aggregate and sectoral channels. Using S&P500 data from the first quarter of 1957 to third quarter of 2014, we construct separate indices to measure aggregate and sectoral uncertainty and compare their effects on the unemployment rate in a standard macroeconomic vector autoregressive (VAR) model. We find that aggregate uncertainty leads to an immediate increase in unemployment, with the impact dissipating within a year. In contrast, sectoral uncertainty has a long-lived impact on unemployment, with the peak impact occurring after two years. The results are consistent with a view that the impact of aggregate uncertainty occurs through a “wait-and-see” mechanism while increased sectoral uncertainty raises unemployment by requiring greater reallocation across sectors.

Author : Claire H. Hollweg,Daniel Lederman,Diego Rojas
Publisher : World Bank Publications
Page : 123 pages
File Size : 48,9 Mb
Release : 2014-07-03
Category : Business & Economics
ISBN : 9781464802638

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Sticky Feet by Claire H. Hollweg,Daniel Lederman,Diego Rojas Pdf

This report quantifies labor mobility costs in developing countries and simulates the implied adjustment paths of employment and wages following a change in trade policy. High mobility costs are shown to reduce the potential gains to trade reform.

Author : Barbara Petrongolo,Christopher A. Pissarides
Publisher : Unknown
Page : 64 pages
File Size : 43,9 Mb
Release : 2000
Category : Job hunting
ISBN : UVA:X006119216

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Looking Into the Black Box by Barbara Petrongolo,Christopher A. Pissarides Pdf

Discusses the process that matches unemployed workers to available job vacancies. Explores the microfoundations, empirical evidence, and estimation issues underlying the aggregate matching function.

Author : Patrick A. Puhani
Publisher : Springer Science & Business Media
Page : 251 pages
File Size : 50,6 Mb
Release : 2012-12-06
Category : Business & Economics
ISBN : 9783642586859

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Evaluating Active Labour Market Policies by Patrick A. Puhani Pdf

Most governments in today's market economies spend significant sums of money on labour market programmes. The declared aims of these programmes are to increase the re-employment chances of the unemployed. This book investigates which active labour market programmes in Poland are value for money and which are not. To this end, modern statistical methods are applied to both macro- and microeconomic data. It is shown that training programmes increase, whereas job subsidies and public works decrease the re-employment opportunities of the unemployed. In general, all active labour market policy effects are larger in absolute size for men than for women. By surveying previous studies in the field and outlining the major statistical approaches that are employed in the evaluation literature, the book can be of help to any student interested in programme evaluation irrespective of the paticular programme or country concerned.

Author : Sandrine Cazes,Alena Nešporová
Publisher : International Labour Organization
Page : 180 pages
File Size : 51,5 Mb
Release : 2003
Category : Business & Economics
ISBN : 9221137236

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Labour Markets in Transition by Sandrine Cazes,Alena Nešporová Pdf

"This book aims to contribute to [the] debate on the degree of flexibility and security needed for the transition countries, and its implications for the new direction of labour market and social policies."--Foreword.

Author : National Research Council,Division of Behavioral and Social Sciences and Education,Committee on Population,Division on Engineering and Physical Sciences,Board on Mathematical Sciences and Their Applications,Committee on the Long-Run Macroeconomic Effects of the Aging U.S. Population
Publisher : National Academies Press
Page : 230 pages
File Size : 55,6 Mb
Release : 2013-01-10
Category : Social Science
ISBN : 9780309261968

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Aging and the Macroeconomy by National Research Council,Division of Behavioral and Social Sciences and Education,Committee on Population,Division on Engineering and Physical Sciences,Board on Mathematical Sciences and Their Applications,Committee on the Long-Run Macroeconomic Effects of the Aging U.S. Population Pdf

The United States is in the midst of a major demographic shift. In the coming decades, people aged 65 and over will make up an increasingly large percentage of the population: The ratio of people aged 65+ to people aged 20-64 will rise by 80%. This shift is happening for two reasons: people are living longer, and many couples are choosing to have fewer children and to have those children somewhat later in life. The resulting demographic shift will present the nation with economic challenges, both to absorb the costs and to leverage the benefits of an aging population. Aging and the Macroeconomy: Long-Term Implications of an Older Population presents the fundamental factors driving the aging of the U.S. population, as well as its societal implications and likely long-term macroeconomic effects in a global context. The report finds that, while population aging does not pose an insurmountable challenge to the nation, it is imperative that sensible policies are implemented soon to allow companies and households to respond. It offers four practical approaches for preparing resources to support the future consumption of households and for adapting to the new economic landscape.

Author : Richard Layard,P. Richard G. Layard,S. J. Nickell,Richard Jackman
Publisher : Oxford University Press, USA
Page : 678 pages
File Size : 44,6 Mb
Release : 2005
Category : Business & Economics
ISBN : 0199279179

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Unemployment by Richard Layard,P. Richard G. Layard,S. J. Nickell,Richard Jackman Pdf

This broad survey of unemployment will be a major source of reference for both scholars and students.

Author : Sandrine Cazes,Sher Verick
Publisher : International Labor Office
Page : 308 pages
File Size : 55,9 Mb
Release : 2013
Category : Business & Economics
ISBN : IND:30000141626675

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Perspectives on Labour Economics for Development by Sandrine Cazes,Sher Verick Pdf

In developing countries, labour markets play a central role in determining economic and social progress since employment status is one of the key determinants of exiting poverty and promoting inclusion. Yet the reality in most developing countries is that the labour market fails to create the jobs in the formal economy that would help individuals and their families prosper. In recognition of these challenges, governments and other stakeholders in developing countries have increasingly prioritised policies and programmes to promote decent work. However, this requires navigating a range of complex issues and debates surrounding the linkages between development processes and labour market outcomes. This volume consists of three main thematic parts. Part I provides a broad overview of key issues, including characterising the employment challenge in developing countries and the link between economic growth, distribution, poverty and employment. Drawing on the literature and country examples, Part II analyses the specific topics of wages, migration and education. The final section shifts to a more normative focus, addressing labour market institutions and policies, along with systematic approaches to quantifying labour markets in developing countries. Perspectives on Labour Economics for Development is an invaluable reference for policy-makers in middle- and low-income countries as well as an ideal handbook for teachers and students of economics and development.

Author : Ms.Valerie Cerra,A. Fatas,Ms.Sweta Chaman Saxena
Publisher : International Monetary Fund
Page : 50 pages
File Size : 51,5 Mb
Release : 2020-05-29
Category : Business & Economics
ISBN : 9781513536996

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Hysteresis and Business Cycles by Ms.Valerie Cerra,A. Fatas,Ms.Sweta Chaman Saxena Pdf

Traditionally, economic growth and business cycles have been treated independently. However, the dependence of GDP levels on its history of shocks, what economists refer to as “hysteresis,” argues for unifying the analysis of growth and cycles. In this paper, we review the recent empirical and theoretical literature that motivate this paradigm shift. The renewed interest in hysteresis has been sparked by the persistence of the Global Financial Crisis and fears of a slow recovery from the Covid-19 crisis. The findings of the recent literature have far-reaching conceptual and policy implications. In recessions, monetary and fiscal policies need to be more active to avoid the permanent scars of a downturn. And in good times, running a high-pressure economy could have permanent positive effects.

Author : Robert Shimer
Publisher : Princeton University Press
Page : 192 pages
File Size : 46,6 Mb
Release : 2010-04-12
Category : Business & Economics
ISBN : 9781400835232

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Labor Markets and Business Cycles by Robert Shimer Pdf

Labor Markets and Business Cycles integrates search and matching theory with the neoclassical growth model to better understand labor market outcomes. Robert Shimer shows analytically and quantitatively that rigid wages are important for explaining the volatile behavior of the unemployment rate in business cycles. The book focuses on the labor wedge that arises when the marginal rate of substitution between consumption and leisure does not equal the marginal product of labor. According to competitive models of the labor market, the labor wedge should be constant and equal to the labor income tax rate. But in U.S. data, the wedge is strongly countercyclical, making it seem as if recessions are periods when workers are dissuaded from working and firms are dissuaded from hiring because of an increase in the labor income tax rate. When job searches are time consuming and wages are flexible, search frictions--the cost of a job search--act like labor adjustment costs, further exacerbating inconsistencies between the competitive model and data. The book shows that wage rigidities can reconcile the search model with the data, providing a quantitatively more accurate depiction of labor markets, consumption, and investment dynamics. Developing detailed search and matching models, Labor Markets and Business Cycles will be the main reference for those interested in the intersection of labor market dynamics and business cycle research.

Author : OECD
Publisher : OECD Publishing
Page : 220 pages
File Size : 55,7 Mb
Release : 2017-06-13
Category : Electronic
ISBN : 9789264274860

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OECD Employment Outlook 2017 by OECD Pdf

The 2017 edition of the OECD Employment Outlook reviews recent labour market trends and short-term prospects in OECD countries.