Decomposing the Ins and Outs of Cyclical Unemployment # 305 Ronald Bachmann
نویسندگان
چکیده
This paper analyzes the contribution of the socioeconomic and demographic composition of the pool of employed and unemployed individuals to the dynamics of the labor market in diff erent phases of the business cycle. Using individual level data from the Current Population Survey (CPS), we decompose diff erences in employment status transition rates between economic upswings and downturns into composition eff ects and behavioral eff ects. We fi nd that overall composition eff ects play a minor role for the cyclicality of the unemployment outfl ow rate, although the contribution of the duration of unemployment is signifi cant. In contrast, composition eff ects dampen the cyclicality of the unemployment infl ow rate considerably. We further observe that the initially positive contribution of composition eff ects to a higher unemployment outfl ow rate turns negative over the course of the recession. JEL Classifi cation: J63, J64, J21, E24
منابع مشابه
Decomposing the Ins and Outs of Cyclical Unemployment
Decomposing the Ins and Outs of Cyclical Unemployment This paper analyzes the contribution of the socioeconomic and demographic composition of the pool of employed and unemployed individuals to the dynamics of the labor market in different phases of the business cycle. Using individual level data from the Current Population Survey (CPS), we decompose differences in employment status transition ...
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