Unemployment Dynamics in the OECD

B. Hobijn, M.W.L. Elsby, A. Sahin

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

We provide a set of comparable estimates for the rates of inflowto and outflow from unemployment using publicly available data for fourteen OECD economies. Using a novel decomposition that allows for deviations of unemployment from its flowsteady state, we find that fluctuations in both inflowand outflowrates contribute substantially to unemployment variation within countries. Anglo-Saxon economies exhibit approximately a 15:85 inflow-outflow split to unemployment variation, while continental European and Nordic countries display closer to a 45:55 split. In all economies, increases in inflows lead increases in unemployment, whereas outflows lag a ramp-up in unemployment. © 2013 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
Original languageEnglish
Article number14
Pages (from-to)530-548
Number of pages19
JournalReview of Economics and Statistics
Volume95
Issue number2
DOIs
Publication statusPublished - 2013

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