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As a measure of labor market strength, the raw employment-to-population ratio (EPOP) confounds employment outcomes with … labor supply behavior. Movement in the EPOP depends on the relative movements of the employment rate (one minus the … unemployment rate) and the labor force participation rate. This paper proposes an adjustment to the calculation of the EPOP using …
Persistent link: https://www.econbiz.de/10010384370
We incorporate a participation decision in a standard New Keynesian model with matching frictions and show that treating the labor force as constant leads to incorrect evaluation of alternative policies. We also show that the presence of a participation margin mitigates the Shimer critique.
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Statistics. The methodology is to analyze the transition rates and implied steady-state levels of employment and unemployment … flow from unemployment to employment actually increased. As another example, changes in the probability of moving between …Unemployment in the U.S. has risen dramatically since the start of the recession in December 2007, going from about 6 …
Persistent link: https://www.econbiz.de/10013138878
Surveys of Youth, we find that negative labor market outcomes during high unemployment periods are mitigated by exposure to a … negative impact of high unemployment periods on labor market outcomes of disadvantaged groups, making extension of high …
Persistent link: https://www.econbiz.de/10012852979
Within the existing literature on jobless recoveries a bit of a puzzle is emerging. On the one hand there is evidence of dynamic structural change including off-shoring/globalization and skill-biased technological advances. Other studies emphasize a less dynamic economy with slower growth,...
Persistent link: https://www.econbiz.de/10012989422
Surveys of Youth, we find that negative labor market outcomes during high unemployment periods are mitigated by exposure to a …
Persistent link: https://www.econbiz.de/10012924924