[PDF] The Beveridge Curve And Labour Market Flows eBook

Author : Nils Gottfries
Publisher :
Page : pages
File Size : 15,83 MB
Release : 2019
Category :
ISBN :

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According to search-matching theory, the Beveridge curve slopes downward because vacancies are filled more quickly when unemployment is high. Using monthly panel data for local labour markets in Sweden we find no (or only weak) evidence that high unemployment makes it easier to fill vacancies. Instead, there are few vacancies when unemployment is high because there is a low inflow of new vacancies. We construct a simple model with on-the-job search and show that it is broadly consistent with the cyclical behaviour of stocks and flows in the labour market also without search frictions. In periods of high unemployment, fewer employed job seekers find new jobs and this leads to a smaller inflow of new vacancies.

Author : Ronald Schettkat
Publisher : Routledge
Page : 311 pages
File Size : 23,41 MB
Release : 1996-08-08
Category : Business & Economics
ISBN : 1134779429

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Well-functioning labour markets are a precondition for economic development. Here leading researchers present an overview of labour market workings providing new theoretical and empirical insights.

Author : Ms.Elva Bova
Publisher : International Monetary Fund
Page : 33 pages
File Size : 35,17 MB
Release : 2016-04-12
Category : Business & Economics
ISBN : 1484326466

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This paper explores conditions and policies that could affect the matching between labor demand and supply. We identify shifts in the Beveridge curves for 12 OECD countries between 2000Q1 and 2013Q4 using three complementary methodologies and analyze the short-run determinants of these shifts by means of limited-dependent variable models. We find that labor force growth as well as employment protection legislation reduce the likelihood of an outward shift in the Beveridge curve,. Our findings also show that the matching process is more difficult the higher the share of employees with intermediate levels of education in the labor force and when long-term unemployment is more pronounced. Policies which could facilitate labor market matching include active labor market policies, such as incentives for start-up and job sharing programs. Passive labor market policies, such as unemployment benefits, as well as labor taxation render matching signficantly more difficult.

Author : Yossi Yakhin
Publisher : International Monetary Fund
Page : 54 pages
File Size : 45,10 MB
Release : 2015-03-16
Category : Business & Economics
ISBN : 1484360567

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The paper utilizes a theoretical stock-flow accounting model of the labor market, similar to Blanchard and Diamond (1989). Identifying restrictions are derived from the theoretical model and are imposed on a SVAR system. The estimation allows for decomposing fluctuations to their cyclical and structural components. The model is applied to the Israeli economy. The estimates suggest that non-cyclical factors account for at least half of the decline of the unemployment rate during the period between 2004-Q1, when unemployment peaked at 10.9 percent, and 2011-Q4, when it marked a trough at 5.4 percent; suggesting a shift inward of the Beveridge curve.

Author : Josef Christl
Publisher : Springer Science & Business Media
Page : 166 pages
File Size : 30,58 MB
Release : 2013-03-09
Category : Political Science
ISBN : 3642503047

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Rising unemployment has become one of the most challenging problems for economic policy in many developed economies over the last fifteen years. In the second half of the 1970s and during the first half of the 1980s the labour market situation worsened dramatically. For the OECD area as a whole, unemployment as a percentage of the civilian labour force went up from 3.3 percent in 1974 to 8.1 percent in 1985. The increase in unemployment rates was even more pronounced for OECD-Europe, where it climbed from 3.3 percent to 10.5 percent in this period. Table 1.1: Unemployment Rates in some aECD Countries, 1974-1989 yearly average 1989 1974{79 1974 1979 1985 1980/85 1985/89 USA 5,6 5,8 7,2 5,2 6,8 8,1 6,2 UK 2,2 4,5 11,6 6,5 4,2 10,0 9,7 3,3 8,3 7,3 3,5 6,6 7,9 FRG 2,1 2,4 1,3 1,5 2,4 2,2 Sweden 1,6 1,7 Austria 1,1 1,7 3,6 3,4 1,5 3,0 3,5 Austria*) 1,5 2,0 4,8 5,0 1,9 3,6 5,3 OECDEurope 3,3 5,7 10,5 9,0 4,8 9,1 10,0 OECD 3,7 5,2 8,1 6,6 5,0 7,7 7,5 *) national definition - see footnote 1). Source: OECD, 1989; BMSA.

Author : Olivier J. Blanchard
Publisher :
Page : 0 pages
File Size : 28,81 MB
Release : 2004
Category :
ISBN :

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Over the past thirty years, macroeconomists thinking about aggregate labor market dynamics have organized their thought around two relations, the Phillips curve and the Beveridge curve. The Beveridge curve, the relation between unemployment and vacancies, has very much played second fiddle. We think that emphasis is wrong. The Beveridge relation comes conceptually first and contains essential information about the functioning of the labor market and the shocks that affect it. Labor markets in the United States are characterized by huge gross flows. Close to seven million workers move either into or out of employment every month. While that movement could be consistent with workers reallocating themselves across a given set of jobs, recent evidence by Steve Davis and John Haltiwanger suggests that these flows are associated with high rates of job creating and job destruction. Using a measure of job turnover, defined as the sum of employment increases in new or expanding establishments and employment decreases in shrinking or dying establishments, Davis and Haltiwanger find that during 1979-83, a period of shrinking employment, job turnover in manufacturing averaged some 10 percent per quarter. From a macroeconomic viewpoint, the labor market is highly effective in matching workers and jobs, yet those flows are so large that they imply the coexistence of unfilled jobs and unemployed workers. Examination of the joint movement of unemployment and vacancies can tell us a great deal about the effectiveness of the matching process, as well as about the nature of shocks affecting the labor market. In this paper, we first develop a conceptual frame in which to think about gross flows, about the matching process, and about the effects of shocks on unemployment and vacancies. We then turn to the empirical evidence, using data for the postwar United States. We focus first on the matching process, estimating the "matching function," the aggregate relation between unemployment, vacancies, and new hires. We then interpret the Beveridge relation. More precisely, we look at the joint behavior of unemployment, employment, and vacancies, and infer from it the sources and the dynamic effects of the shocks that have affected the labor market over the past 35 years.