Sample records for area-level unemployment body

  1. Associations between Area-Level Unemployment, Body Mass Index, and Risk Factors for Cardiovascular Disease in an Urban Area

    Lise Gauvin


    Full Text Available Introduction: Cardiovascular Disease (CVD has been linked to "neighbourhood" socioeconomic status (nSES, often operationalized as a composite index of aggregate income, occupation and education within predefined administrative boundaries. The role of specific, non-composite socioeconomic markers has not been clearly explained. It is also unclear whether the relationship between nSES and CVD varies according to sex. We sought to determine whether area-level unemployment (ALU was associated with CVD risk, and whether this association differed by sex. Methods: 342 individuals from the Montreal Neighbourhood Survey of Lifestyle and Health provided self-reported behavioural and socioeconomic information. A nurse collected biochemical and anthropometric data. ALU, a weighted average of the proportion of persons 15-years and older available for but without work, was measured using a Geographic Information System for a 250 m buffer centred on individual residence. Generalized Estimating Equations were used to estimate the associations between ALU, body mass index (BMI and a cumulative score for total cardiometabolic risk (TCR. Results: After confounder adjustments, the mean 4th minus 1st quartile difference in BMI was 3.19 kg/m2 (95% CI: 2.39, 3.99, while the prevalence ratio for the 4th relative to 1st quartile for TCR was 2.20 (95 % CI: 1.53, 3.17. Sex interacted with ALU; women relative to men had greater mean 3.97 kg/m2 (95% CI: 2.08, 5.85 BMI and greater mean TCR 1.51 (95% CI: 0.78, 2.90, contrasted at mean ALU. Conclusions: Area-level unemployment is associated with greater CVD risk, and this association is stronger for women.

  2. Unemployment benefits and unemployment

    Moffitt, Robert A.


    All developed economies have unemployment benefit programs to protect workers against major income losses during spells of unemployment. By enabling unemployed workers to meet basic consumption needs, the programs protect workers from having to sell their assets or accept jobs below their qualifications. The programs also help stabilize the economy during recessions. If benefits are too generous, however, the programs can lengthen unemployment and raise the unemployment rate. The policy chall...

  3. Unemployment - Structural

    Lindbeck, Assar


    Structural unemployment differs from cyclical unemployment by not disappearing in cyclical booms. In economic theory, structural unemployment is usually analysed in terms of the concept of equilibrium unemployment (the "natural unemployment rate" in Friedman’s terminology). Two elaborate concepts of equilibrium unemployment – the non-accelerating inflation rate of unemployment (the NAIRU) and the unemployment rate that induces firms and workers to accept the same real wage (the PS-WS-model) a...

  4. Cyclical Unemployment, Structural Unemployment

    Peter A. Diamond


    Whenever unemployment stays high for an extended period, it is common to see analyses, statements, and rebuttals about the extent to which the high unemployment is structural, not cyclical. This essay views the Beveridge Curve pattern of unemployment and vacancy rates and the related matching function as proxies for the functioning of the labor market and explores issues in that proxy relationship that complicate such analyses. Also discussed is the concept of mismatch.

  5. Structural Unemployment

    Herz, Benedikt; van Rens, Thijs


    There is an ongoing debate on whether the recent surge in unemployment in the US is due to cyclical or structural factors. The distinction is important because the policies required to reduce each type of unemployment are very dierent. We use a novel approach to empirically quantify the extent of structural unemployment and to shed light on its sources. We propose a simple model of a segmented labor market. Within each segment, search frictions generate unemployment. In addition, there is str...

  6. Structural Unemployment

    Benedikt Herz; Thijs van Rens


    Structural unemployment is due to mismatch between available jobs and workers. We formalize this concept in a simple model of a segmented labor market with search frictions within segments. Worker mobility, job mobility and wage bargaining costs across segments generate structural unemployment. We estimate the contribution of these costs to fluctuations in US unemployment, operationalizing segments as states or industries. Most structural unemployment is due to wage bargaining costs, which ar...

  7. Unemployment duration and unemployment insurance

    Røed, Knut; Jensen, Peter; Thoursie, Anna


    Based on pooled register data from Norway and Sweden, we find that differences in unemployment duration patterns reflect dissimilarities in unemployment insurance (UI) systems in a way that convincingly establishes the link between economic incentives and job search behaviour. Specifically, UI...... benefits are relatively more generous for low-income workers in Sweden than in Norway, leading to relatively longer unemployment spells for low-income workers in Sweden. Based on the between-countries variation in replacement ratios, we find that the elasticity of the outflow rate from insured unemployment...

  8. Structural Unemployment in Finland

    Pasi Holm; Elina Somervuori


    Since the Finnish unemployment rate has rocketed to a very high level in the beginning of the 1990?s it is worth to study to what extent the unemployment rate prevailing today is due to cyclical or to structural reasons. In this paper we try to estimate two different indicators that represent the structural part of unemployment, the NAWRU and the NAIRU. The NAWRU (non-accelerating wage rate of unemployment) measures the structural unemployment simply by relating unemployment to wage inflation...

  9. Unemployment Insurance Query (UIQ)

    Social Security Administration — The Unemployment Insurance Query (UIQ) provides State Unemployment Insurance agencies real-time online access to SSA data. This includes SSN verification and Title...

  10. Unemployment and Structural Unemployment in the Baltics

    Christian Ebeke; Greetje Everaert


    While the unemployment rate in the Baltics has fallen sharply from its crisis-peaks, it remains close to double digits. This paper estimates the structural component of the jobless rate in the three Baltic countries and analyzes its causes. Our main findings are that the current still elevated levels of unemployment mostly reflect structural factors. We then turn to why structural unemployment is so high. This paper points to skill mismatches, high tax wedges, and unemployment and inactivity ...

  11. Unemployment in Constanta County during 2006-2010

    Moraru Camelia; Popovici Norina


    Problems of unemployment, its nature, size and fighting it is one of the most serious problems facing the Romanian society. Employment and efficient use of human resources, the size of unemployment and unemployment are not only resultative parameters of the labor market, but also expressions of health and functionality of the whole economic body. Through its direct effects, unemployment exceeds the labor market itself, beeing involved in shaping the macroeconomic imbalances. In this paper is ...

  12. Australian Attitudes to Unemployment and Unemployed People

    Tony Eardley; George Matheson


    Social security support for unemployed people in Australia in the last decade has become increasingly conditional on their demonstrating ever greater job search effort. Yet we know relatively little about whether this shift accords with public opinion. This paper draws on a study of community attitudes to unemployment and unemployed people, commissioned by the former Department of Social Security, based on review and analysis of attitudinal survey data. Overall the evidence is ambiguous. Alth...

  13. Unemployment 2004-2013

    U.S. Department of Health & Human Services — This table contains data on the percent of the population in the labor force who are unemployed (unemployment rate), for California, its regions, counties, county...

  14. Unemployment Accounts for Germany

    Boss, Alfred; Alessio J. G. Brown; Snower, Dennis J.


    We present a proposal for reforming unemployment assistance in Germany through the introduction of unemployment accounts (UAs). Instead of paying taxes that finance the unemployment assistance, employed people make ongoing contributions to their UAs and can make withdrawals from these accounts during periods of unemployment. The aim of this policy proposal is to improve employment incentives without significant changes in the current redistribution scheme. We provide a detailed account of how...

  15. Deconstructing Structural Unemployment

    John Schmitt; Kris Warner


    Some economic observers argue “structural unemployment” has increased in the wake of the Great Recession, but in this paper we find little support for either of two arguments that suggest that structural unemployment has been on the rise. The first argument focuses on the large increase in unemployment among construction workers. The second argument is that falling house prices have reduced the mobility of unemployed workers — creating a “housing lock” in which unemployed workers, who would o...

  16. Pareto-Improving Unemployment Policies

    Lingens, Jorg; Klaus WAELDE


    We investigate how continental European unemployment can be reduced without reducing unemployment benefits and without reducing the net income of low-wage earners. Lower unemployment replacement rates reduce unemployment, the net wage and unemployment benefits. A lower tax on labour increases net wages and - for certain benefit-systems - unemployment benefits as well. Combining these two policies allows to reduce unemployment in countries with "net-Bismarck" and Beveridge systems without r...

  17. The Social Costs of Unemployment: Accounting for Unemployment Duration

    Ochsen, Carsten; Welsch, Heinz


    The social costs of unemployment, in terms of unemployment's impact on European citizens' life satisfaction, relate strongly to unemployment duration. At any level of general joblessness, reducing long-term unemployment is more important than reducing the number of people unemployed at any point in time.

  18. Financial Risk and Unemployment

    Eckstein, Zvi; Setty, Ofer; Weiss, David


    There is a strong correlation between the corporate interest rate (BAA rated), and its spread relative to Treasuries, and the unemployment rate. We model how interest rates and potential default rates impact equilibrium unemployment in a Diamond-Mortesen-Pissarides model. We calibrate the model using US data without targeting business cycle statistics. Volatility in the corporate interest rate can explain about 80% of the volatility of unemployment, vacancies, and market tightness. Simulating...

  19. Extended unemployment and UI benefits

    Robert G. Valletta; Katherine Kuang


    During the current labor market downturn, unemployment duration has reached levels well above its previous highs. Analysis of unemployment data suggests that extended unemployment insurance benefits have not been important factors in the increase in the duration of unemployment or in the elevated unemployment rate.

  20. Unemployment and happiness

    Visens Torres, Anna


    Unemployment reduces the well-being of the unemployed and in some cases the well-being of the employed. In this project the effect of unemployment on well-being is studied. This research is focused on Spain, not like most articles based on Great Britain, Germany or United States and uses cross-sectional data from the European Social Survey from the year 2002 until 2012. The main literature reviewed reports that the impact of unemployment on well-being is negative and the negative effect of un...

  1. Unemployment Insurance Management.

    Pope, Daniel C.


    An insurance management system has the goal of minimizing unemployment insurance costs. Components of a model system should include general administration, claims management, and appeals process. (Author)

  2. Youth Unemployment in Southern Europe

    João Leão; Guida Nogueira


    The youth unemployment rate in Europe increased to very high levels after the great recession of 2008, reaching 23% in European Union and 45% in southern European countries. We examine the causes of the high youth unemployment rate which is consistently bigger than the overall unemployment rate. The empirical evidence shows that the youth unemployment rate depends crucially of the level of the overall unemployment rate and on the variation of the unemployment rate.




  4. [Cancer and unemployment].

    Lastra-Del-Prado, R; Rodríguez-García, Juan; Muñoz Cifuentes, P; Gimeno Feliú, L A


    The lack of work is a increasingly dramatic situation in the times we are living. Daily experience of clinicians provides us with important clues that remind us of the existence of a direct relationship between prolonged unemployment and predisposition to serious health problems, in particular to suffering certain types of cancer. This paper aims to review the major epidemiological studies that have dealt the relationship between cancer and unemployment. Several hypotheses may be formulated with the results of this review arising from the possible etiological relationship between unemployment and development (or poor prognosis) of neoplastic processes. PMID:26165951

  5. The Effect of Unemployment Compensation on Unemployment Duration in Germany

    Hunt, Jennifer


    In West Germany during the 1980's, law changes cut the level of unemployment compensation for the unemployed without children, and extended the duration of unemployment insurance for unemployed aged 42 and over, leaving other groups unaffected. This paper takes advantage of these natural experiments to estimate the disincentive effects of unemployment compensation in Germany, using the German Socio-Economic Panel. The analysis of the cut in level is inconclusive. However, the extension of the...

  6. Redefining Unemployment Statistics


    Rural migrant workers are counted in China’s official urban unemployment rate Rural migrant workers are a major work force in Chinese cities. Their employment is usually temporary and sensitive to economic fluctuations.

  7. The Youth Unemployment Dilemma.

    Dodd, John


    Experts agree that the ability to attract and train young people is crucial in today's workplace. Cooperation between government, education, and the private sector is essential to eradicating the problem of youth unemployment. (JOW)

  8. Trade in Unemployment

    Carrere, Céline; Olarreaga, Marcelo; Robert-Nicoud, Frédéric; Fugazza, Marco Carlo


    We embed a model of the labor market with sector-specific search-and-matching frictions into a Ricardian model with a continuum of goods to show that trade liberalization causes higher unemployment in countries with comparative advantage in sectors with strong labor market frictions and leads to lower unemployment in countries with comparative advantage in sectors with weak labor market frictions. We test this prediction in a panel dataset of 97 countries during the period 1995-2009 and find ...

  9. Embodied human capital unemployment

    Kumaraku, Klajdi; Naqvi, Nadeem; Rexhepi, Sara


    Adam Smith (1776) devoted the first three chapters to the division of labor in his Inquiry into the Nature and Causes of the Wealth of Nations. This process, carried far enough, eventually results in a divergence between the distributions of supplies and demands of such horizontally-differentiated distinct types of human capital embodied in different persons, leading to the emergence of Embodied Human Capital Unemployment. We illustrate the relevance of this new concept of unemployment to the...

  10. Growth and Unemployment

    Aghion, Philippe; Howitt, Peter


    This paper examines the long-run effects of growth on unemployment. It assumes that growth arises explicitly from the introduction of new technologies, which require labour re-allocation for their implementation. Using a variant of the search theory developed by Pissarides, the paper shows how unemployment is affected by growth both directly, through the job-destruction rate, and indirectly through its effects on the incentive for firms to create job openings. Our results can be summarized as...

  11. Unemployment and Household formation

    Ebrahim, Amina; Woolard, Ingrid; Leibbrandt, Murray


    In comparison to other continents, Africa has received little scholarly attention with regard to household composition. Household composition is endogenous to a variety of welfare issues and little is understood about the determinants of this composition. Understanding the household composition and formation decision may improve our understanding of how the unemployed gain access to resources and how household composition could provide a safety net to the unemployed. However, increasingly, mo...

  12. Social Security, Unemployment, and Growth

    Bräuninger, Michael


    The paper develops an overlapping generations model that highlights interactions between social security, unemployment and growth. The social security system has two components: old age pensions and unemployment insurance. Pensions have a direct effect on economic growth. Both pensions and unemployment benefits influence equilibrium unemployment caused by wage bargaining. Since unemployment impairs growth, both types of social security have an indirect, negative effect on growth.

  13. Explaining disparities in unemployment dynamics

    Karanassou, Marika; Snower, Dennis J.


    This paper attempts to explain disparities among the unemployment experiences of different OECD countries in terms of the `fragility' of the short-run unemployment equilibrium (the impact of labour market shocks on the short-run unemployment rate) and the lag structure of the employment determination, wage setting, and labour force participation decisions. The effects of this lag structure on unemployment dynamics are captured through two general measures of `unemployment persistence' (occurr...

  14. Area-Level Socioeconomic Characteristics, Prevalence and Trajectories of Cardiometabolic Risk

    Anh D. Ngo


    Full Text Available This study examines the relationships between area-level socioeconomic position (SEP and the prevalence and trajectories of metabolic syndrome (MetS and the count of its constituents (i.e., disturbed glucose and insulin metabolism, abdominal obesity, dyslipidemia, and hypertension. A cohort of 4,056 men and women aged 18+ living in Adelaide, Australia was established in 2000–2003. MetS was ascertained at baseline, four and eight years via clinical examinations. Baseline area-level median household income, percentage of residents with a high school education, and unemployment rate were derived from the 2001 population Census. Three-level random-intercepts logistic and Poisson regression models were performed to estimate the standardized odds ratio (SOR, prevalence risk ratio (SRR, ratio of SORs/SRRs, and (95% confidence interval (CI. Interaction between area- and individual-level SEP variables was also tested. The odds of having MetS and the count of its constituents increased over time. This increase did not vary according to baseline area-level SEP (ratios of SORs/SRRs ≈ 1; p ≥ 0.42. However, at baseline, after adjustment for individual SEP and health behaviours, median household income (inversely and unemployment rate (positively were significantly associated with MetS prevalence (SOR (95%CI = 0.76 (0.63–0.90, and 1.48 (1.26–1.74, respectively, and the count of its constituents (SRR (95%CI = 0.96 (0.93–0.99, and 1.06 (1.04–1.09, respectively. The inverse association with area-level education was statistically significant only in participants with less than post high school education (SOR (95%CI = 0.58 (0.45–0.73, and SRR (95%CI = 0.91 (0.88–0.94. Area-level SEP does not predict an elevated trajectory to developing MetS or an elevated count of its constituents. However, at baseline, area-level SEP was inversely associated with prevalence of MetS and the count of its constituents, with the association of area-level education

  15. Part-Time Unemployment and Optimal Unemployment Insurance

    Ek, Susanne; Holmlund, Bertil


    A significant fraction of the labor force consists of employed workers who are part-time unemployed (underemployed) in the sense that they are unable to work as much as they prefer. This paper develops a search and matching model to study the design of optimal unemployment insurance in an economy with unemployment as well as part-time unemployment. Part-time unemployment provides income insurance and serves as a stepping stone to full-time jobs. Unemployment benefits for part-timers increase ...

  16. Unemployment persistence and the unemployment-productivity relation

    Snower, Dennis J.


    This paper explores the interrelation between the degree of unemployment persistence and the unemployment-productivity trade-off. The analysis suggests that the more effective are structural labour market policies (designed to change labour market institutions and laws, such as job security legislation) in making wages and prices more responsive to current unemployment and making unemployment less persistent, the less effective will be the growth-promoting supply-side policies (such as traini...

  17. Should unemployment benefits decrease as the unemployment spell lengthens?

    Saarenheimo , Tuomas


    It has become a conventional wisdom in economic policy debate that in order to minimise adverse effects on employment, unemployment benefits should decrease with the unemployment spell. This paper, using a series of simple search models, shows that the theoretical result regarding the optimality of a declining unemployment benefit profile is largely a result of specific modeling assumptions and fails to hold in a more general setting. While any pure reduction of unemployment benefits always i...

  18. Understanding Unemployment Hysteresis

    Møller, Niels Framroze

    changing equilibrium, slow adjustment towards the equilibrium (persistent ‡fluctuations), or perhaps even a combination of the two. Different hypotheses of slow adjustment, as implied by theories of hysteresis, nominal rigidities or labor hoarding can also be compared. A small illustrative application to...... UK quarterly data on prices, wages, output, unemployment and crude oil prices, suggests that, for the period 1988 up to the onset of the …financial crisis, the non-stationarity of UK unemployment cannot be explained as a result of slow adjustment, including sluggish wage formation as emphasized by...

  19. Unemployment insurance and the uninsured

    Tali Regev


    Under federal-state law workers who quit a job are not entitled to receive unemployment insurance benefits. To show how the existence of the uninsured affects wages and employment, I extend an equilibrium search model to account for two types of unemployed workers: those who are currently receiving unemployment benefits and for whom an increase in unemployment benefits reduces the incentive to work, and those who are currently not insured. For these, work provides an added value in the form o...


    Glenn Jenkins; GRAHAM GLENDAY


    In this study we examine the unemployment experience of workers who became unemployed during the period 1972 through 1979 in the 19 regions across the country, a group that represents about 58 per cent of the Canadian labour force. The employment/unemployment experience of workers over this eight-year period was derived from a data base constructed from the one-in ten sample of the administrative records kept by the Department of Employment and Immigration concerning Unemployment Insurance (U...

  1. Self-Fulfilling Unemployment Crises

    Javier Bianchi


    This paper proposes a theory of self-fulfilling unemployment fluctuations driven by an aggregate demand externality. Expectations of high unemployment, lead to low income and low aggregate demand. In turn, low aggregate demand leads to expectations of deflation and high unemployment. I show that this feedback between expectations and aggregate demand can lead to the emergence of self-fulfilling fluctuations in involuntary unemployment. Quantitative analysis calibrated to Spain shows that epis...

  2. Unemployment and endogenous growth

    van Schaik, A.B.T.M.; de Groot, H.L.F.


    In this paper we develop a two-sector endogenous growth model with a dual labour market, based on efficiency wages. Growth is driven by intentional R&D performed in the high-tech and high-wage sector. It is examined how a change in rivalry among firms affects simultaneously growth and unemployment.

  3. State Dependence in Unemployment

    Ahmad, Nisar


    This study examines the extent state dependence among unemployed immigrants in a dynamic discrete choice framework. Three alternative methodologies are employed to control for the problem of the initial condition. The empirical findings show that there is a considerable correlation between the un...

  4. Tackling the Unemployment Challenge


    As the world's largest economy in transition, Chinafaces a severe unemployment challenge. With aworking population of 751 million, China'sunemployment rate stands at more than l O% in urbanareas," including rural surplus laborers, it is astaggering 20%. Since assuming office in March

  5. Unemployment and Mortality

    Nguyen, Ha; Nguyen, Huong


    Did unemployment in the Great Recession hurt people's health? The broad answer is no: job losses have statistically insignificant impacts on mortality. The exogenous sources of job losses in a U.S. county is the tradable job losses driven by external demand collapses during the Great Recession. The insignificant relationship holds for males and females, for all age groups, and for almost a...

  6. Retraining the Unemployed.

    Somers, Gerald G., Ed.

    Case histories evaluate the effectiveness of recent and current retraining programs for unemployed workers under Federal, state, municipal, and union-management auspices, judging them by their success in placing workers in useful employment in distressed economic areas. Data on various aspects of retraining programs under a wide variety of…

  7. Youth Unemployment, 1978. Denmark.

    Ministry of Education, Copenhagen (Denmark).

    This study of measures taken to reduce youth unemployment in Denmark is based on reports from local authorities, county authorities, and labor market boards, and on surveys made by the central government. The first section describes the total efforts made during 1978. The second section describes programs undertaken by the Danish Ministry of Labor…

  8. Unemployment and domestic violence

    Dan Anderberg; Helmut Rainer; Jonathan Wadsworth; Tanya Wilson


    Contrary to popular belief, the incidence of domestic violence in Britain does not seem to have risen during the recession. But according to research by Jonathan Wadsworth and colleagues, men and women have experienced different risks of unemployment - and these have had contrasting effects on the level of physical abuse.

  9. [Psychiatric interventions for the unemployed].

    Reissner, V; Scherbaum, N; Wiltfang, J; Kis, B; Meiler, B; Lieb, B; Mikoteit, T; Ehren, G; Hebebrand, J


    Unemployment is related to a higher risk for psychological distress and mental disorders, which cause individual suffering and socioeconomic costs for society in general. This selective review surveys the relationship between unemployment and psychological well-being and mental disorders. The most important programs for the improvement of the mental health of the unemployed are summarized: 1. Interventions for the unemployed with the aim of improving coping strategies reduce the risk of developing depressive symptoms. 2. The SUPPORT liaison outpatient unit collaborates closely with the unemployment agency and offers a low-threshold screening for mental disorders for unemployed subjects as well as counseling for those in need of treatment. 3. A group training based on cognitive behavioral therapy improves the psychological well-being of unemployed participants. 4. Supported employment is an effective means of placing severely mentally ill patients in a work-place accompanied by an extensive professional support. PMID:26105163

  10. Do the long-term unemployed adapt to unemployment?

    De Witte, Hans


    Full Text Available The literature on the psychological consequences of unemployment suggests that an adaptation process takes place among the long-term unemployed. Their psychological well-being decreases strongly at the beginning of unemployment, to stabilize at a lower level after a certain time. This stabilization is due to an adaptation process, in which the unemployed decrease their job search behaviors and lower their employment commitment. In this cross-sectional study from Belgium, 563 short-term and 195 long-term unemployed are compared on psychological well-being, the experience of unemployment, employment commitment and job search behavior. The results are in line with the hypothesis of an adaptation process among the long-term unemployed. The short-term unemployed experienced more psychological distress than the long-term unemployed. The short-term unemployed also showed stronger employment commitment and more often applied for jobs. The results of some retrospective questions, in which the respondents had to compare their actual behaviors and well-being with those in the past, suggest that an adaptation process took place. Some policy recommendations are discussed.

  11. The unemployment in Europe



    Full Text Available The paper present the evolution of two characteristics, the unemployment rate and the medium level of education rate also in European Union (28 countries and particularly in Romania. The analyzed was made during six years, between 2008 and 2013. At the end of the paper it was applied a correlation coefficient in order to demonstrate if there is any link between the two characteristics. The results show that also in the European Union, as well as in Romania the evolution of the two characteristics has almost the same tendency during the entire period. Also the Pearson correlation coefficient shows that between the two indicators, the unemployment rate and the medium level of education rate there is a negative link but with a very small value which get us to the conclusion that the correlation is insignificant.

  12. Unemployment, migration, and growth

    Valerie R. Bencivenga; Bruce D. Smith


    Economic development is typically accompanied by a very pronounced migration of labor from rural to urban employment. This migration, in turn, is often associated with large scale urban underemployment. Both factors appear to play a very prominent role in the process of development. We consider a model in which rural-urban migration and urban underemployment are integrated into an otherwise conventional neoclassical growth model. Unemployment arises not from any exogenous rigidities, but from...

  13. Unemployment out of nowhere

    Kakarot-Handtke, Egmont


    Unemployment is usually explained with reference to the equilibrium of supply and demand in the labour market. This approach rests on specific behavioral assumptions that are formally expressed as axioms. The standard set of axioms is replaced in the present paper by a set of structural axioms. This approach yields the objective determinants of employment. They consist of effective demand, the actual outcome of price formation, structural stress as determined by the heterogeneity within the b...

  14. Effort, trade, and unemployment

    Lutz Altenburg; Anke Brenken


    This paper incorporates equilibrium unemployment caused by efficiency wages into a monopolistic competition model of trade. Worker effort is treated as an endogenous variable that depends on the optimizing behaviour of firms and workers. Opening up trade induces firms to demand greater worker effort and to cut the size of their workforce. This counteracts the positive employment effect due to entry of firms. Circumstances are indicated in which the two effects just balance, leaving aggregate ...

  15. Regional Unemployment and Industrial Restructuring in Poland

    Newell, Andrew; Pastore, Francesco


    This paper studies regional unemployment inequality in Poland. We find that higher unemployment regions are those experiencing greater change in industrial structure. We also find high unemployment regions are those with higher inflow rates to unemployment rather than longer spells of unemployment. These findings suggest that regional unemployment varies importantly with job destruction in Poland. Econometric analysis of the determinants of employment to unemployment flows reinforces this imp...

  16. The Employment, Unemployment and Unemployment Compensation Benefits of Immigrants

    Hurst, Michael E; Chiswick, Barry R.


    This report analyzes the employment and unemployment experiences of adult foreign-born men, both among themselves and in comparison with the native born. The empirical analysis uses microdata from the 1990 Census of Population. Three dependent variables are analyzed, weeks worked (employment) in 1989, unemployment status in the reference week in 1990, and a proxy measure of unemployment compensation benefits received in 1989. The theoretical model focuses on the job search behavior of the for...

  17. Social Psychology, Unemployment and Macroeconomics

    Darity, William A; Arthur H. Goldsmith


    In a conventional macroeconomic model, following a policy change, as nominal wages adjust the economy returns to its original real levels of employment, output, and unemployment. This description of events ignores the social psychological consequences of exposure to unemployment. On theoretical grounds, unemployment is expected to damage psychological health, which in turn harms personal productivity. Empirical work supports both of these propositions. This paper presents a 'behavioral' macro...

  18. Unemployment in the great recession

    Christopher A. Pissarides


    This paper studies the responses of unemployment in Germany, the United States and Britain to the Great Recession of 2008-09 by making use of Beveridge curve analysis, and in the entire OECD with other techniques. It is shown that Britain suffered from recession but no structural problems; the United States suffered from structural unemployment during the recovery; Germany exhibited a much better performance both during and after the recession. The rise in OECD unemployment is broken down int...

  19. Balanced Unemployment in Polish Economy

    Kamila Szymańska


    The article deals with the problem of balanced unemployment in relation to the Polish economy. This issue with its variety considerations and economic, social and political implications is today one of the most important matter. Author analyses this problem together with its reasons and refer it to the Polish economy. In first and second part of the text there are presented basic assumptions of natural unemployment theory and Non-Accelerating Inflation Rate of Unemployment. Third part is an a...

  20. Monetary policy and European unemployment

    Schettkat, Ronald; Sun, Rongrong


    In the long history of rising and persistent unemployment in Europe almost all institutions - employment protection legislation, unions, wages, wage structure, unemployment insurance, etc. - have been alleged and found guilty to have caused this tragic development at some point in time. Later, welfare state institutions in interaction with external shocks were identified as more plausible causes for rising equilibrium unemployment in Europe. Monetary policy has managed to be regarded as innoc...

  1. Unemployment and Labor Market Imperfections

    Lindbeck, Assar


    This paper deals with the role of various types of labor market imperfections for employment and unemployment. On the demand side for labor, the paper analyzes the consequences of labor turnover costs for wage formation and employment, showing that such costs may generate persistent unemployment due to the market powers which they create for incumbent workers ("insiders"). On the labor supply side, the paper emphasizes the role of alternative types of unemployment benefit systems. There is al...

  2. Sectoral Shocks and Structural Unemployment


    When current employers rave more information about worker quality than to potential employers, sectoral shocks cause structural unemployment. That is, some workers laid off from an injured sector remain unemployed despite the fact that trey are of sufficient quality to be productively employed in an expanding sector at toe prevailing wage, Moreover, sectoral unemployment rates are not monotonic in one severity of sectoral shocks due to one interaction of layoff activity and hiring activity. F...

  3. Entrepreneurship, Asymmetric Information and Unemployment

    Robin Boadway; Nicolas Marceau; Maurice Marchand; Marianne Vigneault


    We examine how three sources of asymmetric information affect the supply of entrepreneurs and unemployment. In the first case, banks cannot observe entrepreneurs' risk of failure so ration credit. This increases the number of entrepreneurs and the level of unemployment. In the second case, firms cannot observe workers' effort so offer a wage above the market clearing one. This results in unemployment and too few entrepreneurs. The final case arises when firms cannot observe workers' abilities...

  4. Employment Turnover and Unemployment Insurance

    Hassler, John; Vicente Rodríguez Mora, José


    Two features distinguish European and US labour markets. First, most European countries have a considerably more generous unemployment insurance system. Second, the duration of unemployment and employment spells are substantially higher in Europe – employment turnover is lower. We show that self-insurance, i.e. saving and borrowing, is a good substitute for unemployment insurance when turnover is as high as in the United States. If the insurance system is less than perfectly actuarially fair,...

  5. Educational Mismatch and Wait Unemployment

    Patrizia Ordine; Giuseppe Rose


    This work investigates educational mismatch and its interrelationships with individual unemployment duration. By studying unemployment histories of Italian workers we show that overeducated have longer unemployment spells than well matched workers. Using duration models we show that hazard rates of graduates are higher than those of undergraduates only for transitions toward occupations that require the competencies provided by the universities. This process is strictly related to innate abil...

  6. Why scarce resources are sometimes unemployed

    Yetter, Erin A.


    The unemployment rate always seems to be in the news, but did you know there are different kinds of unemployment? There is the natural rate of unemployment; cyclical, frictional, and structural unemployment; plus underemployment. Read the October 2013 Page One Economics Newsletter, “Why Scarce Resources Are Sometimes Unemployed,” to learn the differences.

  7. Surviving Unemployment without State Support: Unemployment and Household Formation in South Africa

    Klasen, Stephan; Woolard, Ingrid


    High unemployment in many OECD countries is often attributed, at least in part, to the generosity and long duration of unemployment compensation. It is therefore instructive to examine a country where high unemployment exists despite the near complete absence of an unemployment insurance system. In South Africa unemployment stood at 23% in 1997 and the unemployed have no unemployment insurance nor informal sector activities to fall back on. This paper examines how the unemployed are able to g...

  8. [Smoking among the unemployed: impact of structural factors on lifestyle].

    Kłos, Jan; Gromadecka-Sutkiewicz, Małgorzata


    In times of economic crisis, questions arise about its relationship to the state of public health. One of the responses might be to investigate health behaviors of people who suffer most from the crisis, which is the unemployed. This study focuses on the many links between smoking among the jobless and other aspects of their lifestyle as well as selected social factors. In our research, we used statistical methods and a questionnaire. based survey. The research was conducted in 2007 and it covered 1,068 unemployed persons registered with the District Employment Office in Poznan. The prevalence of smoking among the unemployed is higher than the national average and is associated with their socio-economic status, gender and such lifestyle aspects as the amount of alcohol consumed, the amount of free time, body mass index, the number of meals consumed, the number of persons the unemployed can rely on, and the amount of time devoted to exercise. PMID:20301929

  9. Analysis of unemployment in the Czech Republic

    Neumannová, Lucie


    Bachelor thesis, whose name sounds like an analysis of unemployment in the Czech Republic is divided into two parts, theoretical and analytical part. In the theoretical part are processed and přiblíženy basic knowledge unemployment — the issue of unemployment, its definition and measurement, the different types and causes of unemployment, unemployment policy is described and finally approached the historical development of unemployment by the year 1999. The analytical part consists of three p...

  10. Wage Inflation and Structural Unemployment in Ireland

    Keeney, Mary J.


    In this paper we represent structural unemployment by relating observed unemployment to wage inflation. An estimated series for the non-accelerating wage rate of unemployment (NAWRU) shows that the unemployment gap between observed unemployment and the structural rate provides an intuitive account of prevailing aggregate demand conditions within the Irish economy over the period 1980 to 2005. This indicates that the estimated NAWRU series is a good measure of Irish structural unemployment ove...

  11. A note on measuring unemployment

    Nanak Kakwani; Hyun H. Son


    This paper proposes a new measure of the unemployment rate. This measure takes into account not only people who are unemployed, but also those earning below the subsistence level of income in the labor market. The proposed methodology is applied to Brazil?s unit record household surveys covering the period between 1995 and 2004.

  12. Youth Unemployment and National Service.

    Thomas, Franklin A.

    This 1983 speech by the president of the Ford Foundation addresses the problem of youth unemployment and examines the case for adoption of a system of "National Service." The widening effects of structural unemployment are cited; and economic, demographic, and technological reasons for this phenomenon are outlined. National Service is described as…

  13. Structural Unemployment: Theory and Measurement.

    Penz, G. Peter

    The purpose of this monograph is to present a theoretical framework useful for measuring structural unemployment. Developed on the basis of a literature review, this framework was applied to Canadian data. The approach which explains structural unemployment in terms of the causes of labor displacement is inadequate because it ignores impediments…

  14. Youth Unemployment in the Caribbean

    Parra-Torrado, Monica


    Global economic shocks coupled with natural disasters left most Caribbean countries with zero to negative growth and high unemployment rates. The Caribbean region was strongly affected by the last great financial crisis, which resulted in a regional average of zero economic growth in 2010. The purpose of this note is to evaluate the nature of youth unemployment in order to propose policy o...

  15. Parental unemployment and child health

    Mörk, Eva; Sjögren, Anna; Svaleryd, Helena


    We analyze to what extent health outcomes of Swedish children are worse among children whose parents become unemployed. To this end we combine Swedish hospitalization data for 1992-2007 for children 3-18 years of age with register data on parental unemployment. We find that children with unemployed parents are 17 percent more likely to be hospitalized than other children, but that most of the difference is driven by selection. A child fixed-effects approach suggests a small effect of parental...

  16. Immigrant unemployment: the Australian experience.

    Miller, P W; Neo, L M


    "Between 1980 and 1996 both male and female immigrants experienced higher unemployment rates than Australia-born workers....A multivariate analysis is used in this article to examine unemployment rate differentials between Australia-born and immigrants from English-speaking countries and immigrants from non-English-speaking countries. A feature of the analysis is decomposition of unemployment rate differences between birthplace groups into a component attributable to the different characteristics of the birthplace groups (e.g. different mean levels of education) and a part that is viewed as an impact associated simply with being foreign born." (EXCERPT) PMID:12292381


    Consuela NECŞULESCU


    Full Text Available This article begins with the assessment regarding the relation between partial occupancy, education and the unemployed reorientation. The main section of the article analyzes from a statistical point of view the unemployed territorial reorientation concentrationing upon a county area according to data provided by AJOFM Argeş. There are emphasized here not only tendencies, structural dynamics but also processes of concentration and diversification upon age groups. A few final remarks are closing in an optimistic manner the analysis of the unemployed territorial reorientation in the specified territory.

  18. Separations, Sorting and Cyclical Unemployment

    Mueller, Andreas I.


    This paper establishes a new fact about the compositional changes in the pool of unemployed over the U.S. business cycle and evaluates a number of theories that can potentially explain it. Using micro-data from the Current Population Survey for the years 1962-2011, it documents that in recessions the pool of unemployed shifts towards workers with high wages in their previous job. Moreover, it shows that these changes in the composition of the unemployed are mainly due to the higher cyclicalit...

  19. 48 CFR 970.2270 - Unemployment compensation.


    ... 48 Federal Acquisition Regulations System 5 2010-10-01 2010-10-01 false Unemployment compensation... Unemployment compensation. (a) Each state has its own unemployment compensation system to provide payments to... unemployment compensation benefits through a payroll tax on employers. Most DOE contractors are subject to...

  20. Young unemployed, single mothers and their children

    Reiso, Katrine Holm


    Young unemployed and single mothers are natural target groups for labour market policy interventions. At young age, people are particularly prone to unemployment. Figure 1 depicts unemployment rates for the OECD countries and the US by age groups. As the figure shows, people aged 15-24 years are about twice as likely to be unemployed compared to people aged 25- 54 years.

  1. Essays on equilibrium unemployment dynamics

    Speigner, Bradley James


    This thesis is a collection of three essays in which the behaviour of unemployment is studied in different dynamic environments. Throughout, unemployment is understood to be involuntary, arising due to the uncoordinated nature of trade in the labour market as viewed from the perspective of the Diamond-Mortensen-Pissarides equilibrium matching model. It goes without saying that the fundamental motivation for pursuing this line of research is provided by the untold consequences, bot...

  2. High Discounts and High Unemployment

    Hall, Robert E.


    In recessions, all types of investment fall, including employers' investment in job creation. The stock market falls more than in proportion to corporate profit. The discount rate implicit in the stock market rises, and discounts for other claims on business income also rise. According to the leading view of unemployment-the Diamond-Mortensen-Pissarides model-when the incentive for job creation falls, the labor market slackens and unemployment rises. Employers recover their investments in job...

  3. Wages, Rent, Unemployment and Amenities



    The intent of this applied research project is to build on the Roback-Blanchflower-Oswald model linking rent, wages and unemployment to amenities. Using non-metropolitan county level US data and detailed measures of natural and built amenities I estimate a struc-tural model testing for trade-offs between rent, wages, unemployment and amenities. Results do not strictly confirm the Roback-Blanchflower-Oswald (RBO) model but there is sufficient evidence to suggest that amenities plays an importa...

  4. The impact of EMU on European unemployment

    Viñals Iñiguez, José M.; Jimeno Serrano, Juan Francisco


    Persistent unemployment is the top social and economic problem of most EU countries. Today, the unemployment rate in most EU countries is above ten percent and, although unemployment has decreased during expansions, the average EU unemployment rate within each cycle has increased since the early seventies. Although unemployment evolutions have been to some extent similar in EU countries, there are some outliers. On the one side, Portugal, Austria, the UK, the Netherlands, and Luxembourg, whic...

  5. Essays on Unemployment and Real Exchange Rates

    Lindblad, Hans


    In the first essay, Persistence in Swedish Unemployment Rates, we study if there is no or weak tendency in unemployment rates to revert back to previous levels. Persistence is caused by: natural rate shocks, long unemployment cycles, and spill-over from cyclical to permanent unemployment. We find evidence of high persistence. The results suggest that the quick rise of unemployment rates during 1992-1994 was caused by large permanent and cyclical shocks in combination with spill-over effects. ...

  6. An alternative measure of structural unemployment

    Uluc Aysun; Florence Bouvet; Richard Hofler


    In this paper we derive an alternative measure for structural unemployment using a stochastic frontier analysis. This measure, by empirical design, is always less than total unemployment and it is, thus, more consistent with the theoretical description of structural unemployment than its usual interpretation as a smoothed long-run average of total unemployment. We find that our measure does not always track the long-run trends in total unemployment in the U.S. and when compared to the existin...

  7. Converting unemployment benefits into employment subsidies

    Snower, Dennis J.


    This paper explores the implications of giving unemployed people -- particularly the long-term unemployed -- the opportunity to use part of their unemployment benefits to provide employment vouchers to the firms that hire them. The vouchers would depend positively on unemployment duration and training. The paper argues that this policy would give unemployed people and their potential employers an expanded domain of choices in the labour market and thereby reduce the market failures generated ...

  8. Unemployment benefits and unemployment in the Great Recession: the role of macro effects

    Hagedorn, Marcus; Karahan, Fatih; Manovskii, Iourii; Mitman, Kurt


    We exploit policy discontinuity at U.S. state borders to identify the effects of unemployment insurance policies on unemployment. We find large effects of unemployment benefit extensions on unemployment. In fact, the estimates imply that most of the persistent increase in unemployment during the Great Recession can be accounted for by the unprecedented extensions of unemployment benefit eligibility. In contrast to the existing literature that mainly focused on estimating the effects of benefi...

  9. 38 CFR 3.340 - Total and permanent total ratings and unemployability.


    ... impairment of mind or body which is sufficient to render it impossible for the average person to follow a... Evaluations; Service Connection § 3.340 Total and permanent total ratings and unemployability. (a)...

  10. Mobile Communication Signatures of Unemployment

    Almaatouq, Abdullah; Pentland, Alex


    The mapping of populations socio-economic well-being is highly constrained by the logistics of censuses and surveys. Consequently, spatially detailed changes across scales of days, weeks, or months, or even year to year, are difficult to assess; thus the speed of which policies can be designed and evaluated is limited. However, recent studies have shown the value of mobile phone data as an enabling methodology for demographic modeling and measurement. In this work, we investigate whether indicators extracted from mobile phone usage can reveal information about the socio-economical status of microregions such as districts (i.e., average spatial resolution < 2.7km). For this we examine anonymized mobile phone metadata combined with beneficiaries records from unemployment benefit program. We find that aggregated activity, social, and mobility patterns strongly correlate with unemployment. Furthermore, we construct a simple model to produce accurate reconstruction of district level unemployment from their mobi...

  11. An Umbrella for Unemployed Seniors


    The Chinese Government recently took a significant step forward in improving its social safety net: A pension program benefiting the country’s 50 million unemployed urban residents was launched on July 1.The new program, covering unemployed urban residents above the age of 16, excluding students, will be implemented in 60 percent of the country’s cities and townships this year. Starting in 2012, it will be effective across the country.By then, the country’s pension umbrella will cover the last demo

  12. Immigration and unemployment in Australia.

    Tsokhas, K


    "This article is presented in two parts. The first contains a discussion of Australia's migration programme, its different categories and changes in intakes. It also deals with the contribution made by immigration to the size of the labour force.... The second part deals with the effect of immigration on the unemployment rate and concludes that its effect is negligible or, at best, slightly positive.... Against this background the paper discusses factors contributing to the employment and unemployment experience of migrants, for whom English language proficiency and the possession of recognized skills and qualifications are important in determining employability." (SUMMARY IN FRE AND SPA) PMID:12289763

  13. Are homeowners really more unemployed?

    Munch, Jakob Roland; Rosholm, Michael; Svarer, Michael


    jobs, which is in accordance with the predictions from our theoretical model. The overall hazard rate into employment is higher for homeowners, such that there is a negative correlation between homeownership and unemployment duration. Our empirical findings thus contradict the so-called Oswald......This article investigates the effects of homeownership on labour mobility and unemployment duration. We distinguish between finding employment locally or being geographically mobile. We find that homeownership hampers the propensity to move for job reasons, but improves the chances of finding local...

  14. Unemployment and Subsequent Employment Stability

    Wulfgramm, Melike; Fervers, Lukas


    Recent labour market reforms in Europe have been aimed at activating non-employed people and shortening unemployment duration. While this should indisputably be a central policy aim, the exclusive focus on quick re-employment neglects the importance of its quality and stability. Therefore, this...... paper analyses the effect of labour market policy on re-employment stability in Europe. Combining EU-SILC longitudinal survey data with macro-data on labour market policy, we conduct multi-level survival analysis. Empirical evidence suggests that countries with more generous unemployment insurance and...... positive effect on re-employment stability on the other hand....

  15. 20 CFR 625.7 - Disaster Unemployment Assistance: Duration.


    ... 20 Employees' Benefits 3 2010-04-01 2010-04-01 false Disaster Unemployment Assistance: Duration... DISASTER UNEMPLOYMENT ASSISTANCE § 625.7 Disaster Unemployment Assistance: Duration. DUA shall be payable... unemployment which begin during a Disaster Assistance Period....

  16. Unemployment Insurance Fraud and Optimal Monitoring

    David L. Fuller; Ravikumar, B.; Yuzhe Zhang


    An important incentive problem for the design of unemployment insurance is the fraudulent collection of unemployment benefits by workers who are gainfully employed. We show how to efficiently use a combination of tax/subsidy and monitoring to prevent such fraud. The optimal policy monitors the unemployed at fixed intervals. Employment tax is nonmonotonic: it increases between verifications but decreases after a verification. Unemployment benefits are relatively flat between verifications but ...

  17. Disaggregated Models of Unemployment in Australia

    Jeff Borland


    This paper reviews evidence on causes of unemployment in Australia from disaggregated modelling of the labour market. Three main types of modelling are considered. First, information on unemployment rates of labour force participants with different skills is presented, and analyses that seek to explain why unemployment varies between skill groups are described. Second, descriptive evidence on unemployment rates by state and neighbourhood is presented, and possible causes of regional differenc...

  18. Psychological and social aspects of unemployment

    Bláhová, Kateřina


    This work deals with unemployment, namely its psychological and social aspects. The theoretical part is divided into four blocks, namely the labor market, unemployment, the importance of working for human being and social incorporation. The first part, the labor market, analyses labour supply and labour demand and labor market functioning. Part two, unemployment, is composed of subchapters, where the classification of basic types of unemployment, the right to work, employment policy, economic...


    Yanchenko, N.; Yurchenko, L.


    Analyzed the types of unemployment, defined the cause and what factors influenced it, and the problem of unemployment in Ukraine, its condition at the moment. Provided suggestions for reducing the level of unemployment depending on its type. Unemployment in the face of market economic relations have, on the one hand, is an integral, and on the other, the unacceptable alternative to employment, a problem that society has to face on a daily basis by carrying out measures of government regulatio...

  20. The Unemployment Situation in 2010-2012

    Simič, Dagmar


    The thesis deals with the evolution of unemployment rates in the years 2010 to 2012. The issue of unemployment is currently in the Czech Republic very debated areas. It is linked to the labour market, employment, demographics, social and economic situation of the country. In the theoretical part of the work are set out and explained the types of unemployment, including the history of the emergence and development of political economy, which began to unemployment in the world. At the same time...

  1. Why is Unemployment in France so High?

    Reza Moghadam


    High and persistent unemployment, as well as its composition, e.g., high youth unemployment, suggests underlying structural problems in the French labor market. Comparisons with other industrial countries, as well as time series and cross-section empirical evidence, point to a number of potential causes of structural unemployment in France. These Include the generosity of long-term relative to short-term unemployment benefits, the minimum wage, the level of employers’ tax wedge, skills mismat...

  2. Is structural unemployment on the rise?

    Robert G. Valletta; Katherine Kuang


    An increase in U.S. aggregate labor demand reflected in rising job vacancies has not been accompanied by a similar decline in the unemployment rate. Some analysts maintain that unemployed workers lack the skills to fill available jobs, a mismatch that contributes to an elevated level of structural unemployment. However, analysis of data on employment growth and jobless rates across industries, occupations, and states suggests only a limited increase in structural unemployment, indicating that...

  3. Labor Market Segmentation, Wage Dispersion and Unemployment

    Kevin Lang; Dickens, William T.


    This paper briefly reviews the empirical evidence on labor market segmentation and presents some new results on the similarity of the pattern of segmentation across 66 different countries. The paper goes on to consider how unemployment might be understood in a labor market segmentation framework. Existing models of unemployment in a dual labor market suggest that unemployment should be concentrated among those who are ultimately employed in high wage jobs. In fact, unemployment seems to be co...

  4. 20 CFR 617.58 - Unemployment insurance.


    ... 20 Employees' Benefits 3 2010-04-01 2010-04-01 false Unemployment insurance. 617.58 Section 617.58 Employees' Benefits EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR TRADE ADJUSTMENT ASSISTANCE... Unemployment insurance. Unemployment insurance payable to an adversely affected worker shall not be denied...

  5. Unemployment of Women: A Social Policy Issue.

    Rosenman, Linda S.


    Unemployment of women has scarcely been considered by policymakers. The author discusses differences between women and men in rates and types of unemployment and stresses the special problems and needs of unemployed women that must be taken into account in making social policy. (Author)

  6. Structural Unemployment in the United States.

    Bergmann, Barbara R.; Kaun, David E.

    An attempt was made in this study to clarify the concept of structural unemployment, defined as the amount of unemployment (less minimum frictional and seasonal unemployment) that remains at the level of demand which is consistent with general price stability. A principle objective of the study was to examine in some detail the changes in the…

  7. Young People's Explanations of Unemployment.

    Lowe, Graham S.; And Others


    Responding to questionnaires, 983 Canadian high school and university students revealed the following reasons why their peers are unemployed: (1) work values; (2) business/government job creation; (3) educational system; (4) luck/contacts; (5) immigrants/women taking jobs; and (6) work experience/interview skills. These explanations are shaped by…

  8. Business Cycle Dependent Unemployment Insurance

    Andersen, Torben M.; Svarer, Michael

    The consequences of business cycle contingencies in unemployment insurance systems are considered in a search-matching model allowing for shifts between "good" and "bad" states of nature. We show that not only is there an insurance argument for such contingencies, but there may also be an incentive...

  9. Embodied technical progress and unemployment

    del RIO, Fernando


    In this paper we build up a canonical vintage capital model with embodied and disembodied technical progress and generalized Nash bargaining in the labor market. First, we handle both types of technical progress as exogenous, but we endogenize them after. In these setups, we comprehensively study the relations between technical progress, unemployment, and job creation and destruction in the short and long run.

  10. The Notion of Structural Unemployment.

    Standing, Guy


    Although it is often claimed that much current unemployment is "structural," the term is potentially misleading because it is poorly defined. The author identifies the following seven major elements in its make-up: changes in industrial structure, skill mismatch, geographical mismatch, demographic shifts, institutional rigidities,…

  11. Income mobility, unemployment and GDP

    Kuhl, Karol


    This paper attempts to identify macroeconomic factors of income mobility. Explored is the relationship between biannual relative income mobility, the relative change in the unemployment rate and the relative change in GDP. A theoretical model is proposed which provides an explanation of the nature of this relationship. It is then verified using household budget data from the CHER database.

  12. Recalls and unemployment insurance taxes

    Jurajda, Štěpán


    Roč. 11, č. 10 (2004), s. 651-656. ISSN 1350-4851 Institutional research plan: CEZ:AV0Z7085904 Keywords : recalls * unemployment insurance taxes Subject RIV: AH - Economics Impact factor: 0.135, year: 2004

  13. Rent Control and Unemployment Duration

    Munch, Jacob R.; Rosholm, Michael; Svarer, Michael


    In this paper we analyse how rent control affects the duration of individual unemployment. In atheoretical search model we distinguish between two effects of rent control. On one hand, rentcontrol reduces housing mobility and hence mobility in the labour market. On the other hand, tomaintain rent...

  14. Strategies of the unemployed in South Africa: Does moving allow the unemployed to get ahead?

    Amina Ebrahim; Murray Leibbrandt; Ingrid Woolard


    This paper examines the survival strategies of the unemployed using the balanced panel of the first three waves of the National Income Dynamics Study. We find that in response to unemployment and almost no unemployment insurance, unemployed individuals look to parents, relatives and friends for economic support. They are more likely to attach themselves to household that have some income through an employed member or in receive of state support. In many cases the unemployed delay setting up t...

  15. Unemployment in Romania. A Retrospective Study

    Alina Badulescu


    Full Text Available Unemployment started to be registered in Romania in 1991, and in 1994 was conducted the first investigation to evaluate unemployment by ILO standards. Registered unemployment in Romania rose continuously till 1999, and then it decreased, as a result of the transformation processes occurred in the economy. The paper also try to investigate the structural characteristics of unemployment, by age, sex, occupation, instruction level, duration, regional distribution, focusing on changes occurred in the last 15 years and underlining the categories the most affected by unemployment.

  16. Unemployment in Romania. A Retrospective Study

    Alina Badulescu


    Full Text Available Unemployment started to be registered in Romania in 1991, and in 1994 was conducted the first investigation to evaluate unemployment by ILO standards. Registered unemployment in Romania rose continuously till 1999, and then it decreased, as a result of the transformation processes occurred in the economy. The paper also try to investigate the structural characteristics of unemployment, by age, sex, occupation, instruction level, duration, regional distribution, focusing on changes occurred in the last 15 years and underlining the categories the most affected by unemployment.

  17. Moral consequences of becoming unemployed

    Barr, Abigail; Miller, Luis; Ubeda, Paloma


    We test the conjecture that becoming unemployed erodes the extent to which a person acknowledges earned entitlement. We use behavioral experiments to generate incentive-compatible measures of individuals’ tendencies to acknowledge earned entitlement and incorporate these experiments in a two-stage study. In the first stage, participants’ acknowledgment of earned entitlement was measured by engaging them in the behavioral experiments, and their individual employment status and other relevant socioeconomic characteristics were recorded. In the second stage, a year later, the process was repeated using the same instruments. The combination of the experimentally generated data and the longitudinal design allows us to investigate our conjecture using a difference-in-difference approach, while ruling out the pure self-interest confound. We report evidence consistent with a large, negative effect of becoming unemployed on the acknowledgment of earned entitlement. PMID:27071100

  18. Social media fingerprints of unemployment

    Llorente, Alejandro; Cebrian, Manuel; Moro, Esteban


    Recent wide-spread adoption of electronic and pervasive technologies has enabled the study of human behavior at an unprecedented level, uncovering universal patterns underlying human activity, mobility, and inter-personal communication. In the present work, we investigate whether deviations from these universal patterns may reveal information about the socio-economical status of geographical regions. We quantify the extent to which deviations in diurnal rhythm, mobility patterns, and communication styles across regions relate to their unemployment incidence. For this we examine a country-scale publicly articulated social media dataset, where we quantify individual behavioral features from over 145 million geo-located messages distributed among more than 340 different Spanish economic regions, inferred by computing communities of cohesive mobility fluxes. We find that regions exhibiting more diverse mobility fluxes, earlier diurnal rhythms, and more correct grammatical styles display lower unemployment rates. ...

  19. Unemployment (Fears) and Deflationary Spirals

    Den Haan, Wouter; Rendahl, Pontus; Riegler, Markus


    The interaction of incomplete markets and sticky nominal wages is shown to magnify business cycles even though these two features – in isolation – dampen them. During recessions, fears of unemployment stir up precautionary sentiments which induces agents to save more. The additional savings may be used as investments in both a productive asset (equity) and an unproductive asset (money). But even a small rise in money demand has important consequences. The desire to hold money puts deflationar...

  20. Unemployment (fears) and deflationary spirals

    Den Haan, Wouter J; Rendah, Pontus; Riegler, Markus


    The interaction of incomplete markets and sticky nominal wages is shown to magnify business cycles even though these two features ??? in isolation ??? dampen them. During recessions, fears of unemployment stir up precautionary sentiments which induces agents to save more. The additional savings may be used as investments in both a productive asset (equity) and an unproductive asset (money). But even a small rise in money demand has important consequences. The desire to hold money puts deflati...

  1. Unemployment (Fears) and Deflationary Spirals

    Wouter Den Haan; Pontus Rendahl; Markus Riegler


    The interaction of incomplete markets and sticky nominal wages is shown to magnify business cycles even though these two features - in isolation - dampen them. During recessions, fears of unemployment stir up precautionary sentiments which induces agents to save more. The additional savings may be used as investments which induces agents to save more. The additional savings may be used as investments in both a productive asset (equity) and an unproductive asset (money). But even a small rise ...

  2. Sleep Behavior and Unemployment Conditions

    Antillón, Marina; Lauderdale, Diane S.; Mullahy, John


    Recent research has reported that habitually short sleep duration is a risk factor for declining health, including increased risk of obesity, diabetes and coronary heart disease. In this study we investigate whether macroeconomic conditions are associated with variation in mean sleep time in the United States, and if so, whether the effect is procyclical or countercyclical. We merge state unemployment rates from 2003 through 2012 with the American Time Use Survey, a nationally representative ...

  3. Credit, Vacancies and Unemployment Fluctuations

    Nicolas Petrosky-Nadeau


    This paper investigates the implications of agency problems on credit markets when vacancy costs require some external financing for the propagation properties of an otherwise standard labor search model. The countercyclical premium on external finance greatly increases the elasticity of vacancies to exogenous innovations such that the model can match the volatility of aggregate unemployment, vacancies and labor market tension. The model is extended to allow for endogenous job separation as t...

  4. Immigrant Mental Health and Unemployment

    Steven Kennedy


    The objective of this research is to assess whether stress associated with the transition to a new country combined with additional stress arising from unemployment affects the mental health of immigrants. I use the Longitudinal Survey of Immigrants to Australia (LSIA) to examine the effect of labour force status on the mental health of immigrants. By using a rich longitudinal data set, I am able to control for individual immigrant differences whilst examining whether changes in mental health...

  5. Unemployment as a social cost

    Paolo Ramazzotti; Marco Rangone


    Over the last decade, workfare programmes provided support to the unemployed onlyinsofar as they were willing to accept a job. The theoretical underpinnings of these programmesare that institutional constraints prevent labour supply from adjusting to thetechnologically determined requirements of labour demand. We contend that when individualslook for a job, they generally want to take into account non-monetary features suchas occupational status. Status cannot be traded, it usually is complem...

  6. Business cycle dependent unemployment insurance

    Andersen, Torben M.; Svarer, Michael


    The consequences of business cycle contingencies in unemployment insurance systems are considered in a search-matching model allowing for shifts between "good" and "bad" states of nature. We show that not only is there an insurance argument for such contingencies, but there may also be an incentive argument. Since benefits may be less distortionary in a recession than a boom, it follows that counter-cyclical benefits reduce average distortions compared to state independent benefits. We show t...

  7. Unemployment duration and personality traits

    Uysal, Selver; Pohlmeier, Winfried


    This paper focuses on the role personality traits play in determining individual unemployment duration. We argue that a worker's job search intensity is decisively driven by her personality traits, reflected in her propensity to motivate and control herself while searching for a job. Moreover, personality traits, in as far as they can be signaled to a potential employer, may also enhance the probability of receiving and accepting a job offer. For our econometric duration analysis, we use the ...

  8. Social media fingerprints of unemployment.

    Alejandro Llorente

    Full Text Available Recent widespread adoption of electronic and pervasive technologies has enabled the study of human behavior at an unprecedented level, uncovering universal patterns underlying human activity, mobility, and interpersonal communication. In the present work, we investigate whether deviations from these universal patterns may reveal information about the socio-economical status of geographical regions. We quantify the extent to which deviations in diurnal rhythm, mobility patterns, and communication styles across regions relate to their unemployment incidence. For this we examine a country-scale publicly articulated social media dataset, where we quantify individual behavioral features from over 19 million geo-located messages distributed among more than 340 different Spanish economic regions, inferred by computing communities of cohesive mobility fluxes. We find that regions exhibiting more diverse mobility fluxes, earlier diurnal rhythms, and more correct grammatical styles display lower unemployment rates. As a result, we provide a simple model able to produce accurate, easily interpretable reconstruction of regional unemployment incidence from their social-media digital fingerprints alone. Our results show that cost-effective economical indicators can be built based on publicly-available social media datasets.

  9. Unemployment effects of climate policy

    This paper models the unemployment effects of restrictions on greenhouse gas emissions, embodying two of the most significant types of short-term economic imperfections that generate unemployment: sectoral rigidities in labor mobility and sectoral rigidities in wage adjustments. A labor policy is also analyzed that would reduce the direct negative economic effects of the emissions restrictions. The politics of limiting greenhouse gas emissions are often dominated by relatively short-term considerations. Yet the current economic modeling of emissions limitations does not embody economic features that are likely to be particularly important in the short term, in particular, the politically sensitive unemployment rate. Moreover, only a few of these studies also consider policies that would offset the negative direct economic effects of emissions restrictions. For plausible estimates of the parameters, the model shows that, with the labor market imperfections, if there were no offsetting policies, the reductions in GNP in the U.S. in the first 10 years after emissions restrictions were imposed would be as much as 4%. However, if there were two policies, instead of just one: a counteracting labor market policy, as well as the emissions restrictions, the negative direct economic effects could be completely eliminated

  10. Accounting for unemployment: the long and short of it

    Andreas Hornstein


    Shimer (2012) accounts for the volatility of unemployment based on a model of homogeneous unemployment. Using data on short-term unemployment he finds that most of unemployment volatility is accounted for by variations in the exit rate from unemployment. The assumption of homogeneous exit rates is inconsistent with the observed negative duration dependence of unemployment exit rates for the U.S. labor market. We construct a simple model of heterogeneous unemployment with short-term and long-t...

  11. Unemployment in South Africa: The nature of the beast

    Geeta G. Kingdon; John B. Knight


    Unemployment in South Africa is so widespread that it demands an explanation. This paper examines two questions about South African unemployment. Firstly, why do the unemployed not enter the informal sector, as is common in other developing countries? Secondly, why do the unemployed not enter wage employment more readily? The findings provide little support for the idea that unemployed people choose to be unemployed: the unemployed are substantially worse off, and less satisfied with their qu...

  12. Unexpected Victims: How Parents' Unemployment Affects Their Children's Life Satisfaction

    Michael Kind; Haisken-DeNew, John P.


    The effects of unemployment on the subjective wellbeing (SWB) of the unemployed on the unemployed are well documented. Using data from the German SOEP for 17-25 year olds living with their parents, this paper examines the additional indirect effects of parents’ unemployment on their children’s subjective wellbeing in an attempt to capture the full impact of unemployment. The reason for entry (exogenous versus endogenous) into unemployment plays a major role. Fathers who enter unemployment exo...

  13. Unemployment and Health Behaviors Over the Business Cycle: a Longitudinal View

    Gregory Colman; Dhaval Dave


    We examine the first-order internal effects of unemployment on a range of health behaviors during the most recent recession using longitudinal data from the Panel Study of Income Dynamics (PSID) and the National Longitudinal Survey of Youth 1979 (NLSY79). Consistent with prior studies based on cross-sectional data, we find that becoming unemployed is associated with a small increase in leisure-time exercise and in body weight, a moderate decrease in smoking, and a substantial decline in total...

  14. Unemployed and alone? Unemployment and social participation in Europe

    Dieckhoff, M.; Gash, V.


    Purpose – The purpose of this paper is to examine the relationship between unemployment and social participation and aim to identify the role of national policies and attitudes as possible mediators. Design/methodology/approach – The authors use the 2006 EU-SILC module on social participation – a data set that provides rich information on social participation for 22/23 EU countries. They adopt a two-step multi-level design, allowing them to directly examine the impact of national po...

  15. The Effects of Unemployment Compensation in General Equilibrium with Search Unemployment

    Axell, Bo; Lang, Harald


    In this article it is shown that when the effects of an increase in unemployment subsidies are studied in a general equilibrium framework, unemployment increases far less than in a 'partial-partial' model, or may even decrease.

  16. Unemployment (fears), precautionary savings, and aggregate demand

    Wouter den Haan; Markus Riegler; Pontus Rendahl


    This paper analyzes the feedback between firms' hiring decisions and the demand for their products in an environment in which agents are poorly insulated from the financial consequences of unemployment. In such an environment, an increase in the risk of remaining unemployed for a long time increases precautionary savings and reduces aggregate demand, which in turn exacerbates the unemployment duration further. We show that this feedback mechanism can propagate relatively modest exogenous shoc...

  17. Regional unemployment and new economic geography

    Zierahn, Ulrich


    Regional labor markets are characterized by huge disparities. The literature on the wage curve argues that there exists a negative relationship between unemployment and wages. However, this literature cannot explain how disparities of these variables between regions endogenously arise. In contrast, the New Economic Geography analyzes how disparities of regional goods markets endogenously arise, but usually ignores unemployment. Therefore, this paper discusses regional unemployment disparities...

  18. The Measurement of "True" Unemployment in Austria

    Gudrun Biffl


    With EU membership Austria has become obliged to adopt the international definitions and concepts for the calculation of the unemployment rate. In 1994 the questionnaire of the microcensus was adapted to the labor force concept used by international organizations. Since the unemployment rate according to the traditional Austrian sources (registered unemployment and social security employment) differs greatly from that according to the household survey (3.7 percent versus 5.9 percent in 1995),...

  19. Evolution of unemployment population stocks in Romania

    Irena MOCANU


    Effects of the current crisis on the evolution of the stocks of theunemployed persons in Romania. The present paper is focused on the analysis of general dynamic of the input and output flows in/from unemployment, emphasising the growth of the stocks of unemployed population, at national and county levels. The annexes of the annual progress reports published by the National Agency for Employment represent the data-base used in the study. The input flows in unemployment registered a constant e...

  20. Unemployment and Labor Market Issues in Algeria

    Davide Furceri


    The aim of this paper is to analyze unemployment and labor market developments in Algeria and assess the factors that may hamper employment creation. The results of the paper suggest that the relative low output-employment elasticities and rigid labor market are the main factors behind the still high level of unemployment, particularly among the youth. Simulation analyses, based on the results on the relation between labor market institutions and unemployment, show that improvement in labor m...

  1. Exits from unemployment : recall or new job

    Muñoz-Bullón, Fernando; Alba, Alfonso; Arranz, José M.


    JEL Classification Numbers J21, J24 This paper studies transitions out of unemployment in Spain distinguishing between recall to the same employer and reemployment in a new job. We use a large sample of newly unemployed workers obtained from Social Security records for Spain. These data contain information about each individual's employer identy before and after the unemployment spell. A discrete-time duration model with competing risks of exits serves us to investigate the factors that in...

  2. Job Turnover Unemployment and Labor Market Institutions

    Gilles JOSEPH; Olivier PIERRARD; Sneessens, Henri


    This paper studies the role of labor market institutions on unemployment and on the cyclical properties of job flows. We construct an intertemporal general equilib- rium model with search unemployment and endogenous job turnover, and examine the consequences of introducing an unemployment benefit, a firing cost and a downward wage rigidity. The model is able to reproduce the main cyclical properties of a typical European economy. It also suggests that downward wage rigidities, ...

  3. Universal Basic Income versus Unemployment Insurance

    Fabre, Alice; Pallage, Stéphane; Zimmermann, Christian


    In this paper we compare the welfare effects of unemployment insurance (UI) with an universal basic income (UBI) system in an economy with idiosyncratic shocks to employment. Both policies provide a safety net in the face of idiosyncratic shocks. While the unemployment insurance program should do a better job at protecting the unemployed, it suffers from moral hazard and substantial monitoring costs, which may threaten its usefulness. The universal basic income, which is simpler to manage and...

  4. Universal Basic Income versus Unemployment Insurance

    Fabre, Alice; Pallage, Stéphane; Zimmermann, Christian


    In this paper we compare the welfare effects of unemployment insurance (UI) with a universal basic income (UBI) system in an economy with idiosyncratic shocks to employment. Both policies provide a safety net in the face of idiosyncratic shocks. While the unemployment insurance program should do a better job at protecting the unemployed, it suffers from moral hazard and substantial monitoring costs, which may threaten its usefulness. The universal basic income, which is simpler to manage and ...

  5. Product market regulation, firm selection and unemployment

    Felbermayr, Gabriel; Prat, J.


    This paper analyzes the effect of product market regulation (PMR) on unemployment in a search model with heterogeneous multiple-worker firms. In our setup, PMR modifies the distribution of firm productivities, thereby affecting the equilibrium rate of unemployment. We distinguish between PMR related to entry costs and PMR that generates recurrent fixed costs. We find that: (i) higher entry costs raise the rate of unemployment mainly through our novel selection effect, (ii) higher fixed costs ...

  6. Unemployment hysteresis: empirical evidence for Latin America

    Astrid Ayala; Juncal Cuñado; Luis Albériko Gil-Alana


    This paper analyzes the unemployment dynamics of 18 Latin American countries for the last four decades. We use a time series approach to test the mean reversion of unemployment rates and its approximation to a Natural Rate of Unemployment (NRU). The tests include the possibility of one and two structural changes to account for the occurrence of significant macroeconomic changes experienced by the Latin American economies. In addition, we estimate the order of integration of the series, allowi...

  7. Unemployment and labor reallocation in Europe

    Hogrefe, Jan; Sachs, Andreas


    We ask whether sectoral shocks and the subsequent labor reallocation are responsible for unemployment within selected European economies. Our measure of sectoral labor reallocation is adjusted for aggregate influences and the remaining variation is linked to unemployment in country specific dynamic models. For Spain, the ADL-model estimation reveals a significant impact of sectoral reallocation on unemployment that goes beyond usual business cycle patterns. In Italy, there is weaker yet detec...

  8. Review of Structural Unemployment(in Japanese)

    GENDA Yuji; Kondo, Ayako


    Understanding the nature of structural unemployment is a very important issue in employment policy. While many discussions on this important topic have taken place, there is still no clear definition of what, exactly, it is, and no accurate measurement methods have been introduced. This paper surveys what structural unemployment is, reviews some theoretical interpretations and existing methods of measuring structural unemployment, and explores new approaches in an attempt to grasp the nature ...

  9. Externalities in Wage Formation and Structural Unemployment

    De La Croix, David


    A sectorial general equilibrium model in which externalities among sectors arise through wage envy is presented. Without externalities, equilibrium unemployment is only a function of the product market power of the firm and of demand uncertainty. With externalities, unemployment is higher. It is increasing with union power even though bargaining is efficient. Aggregate demand shock do not modify the magnitude of unemployment. However, when externalities are present, sectorial demand shocks mo...

  10. Financing Unemployment Benefits : Dismissal versus Employment Taxes

    Florian Baumann; Nikolai Stähler


    This paper investigates the effects of using dismissal taxes to finance unemployment benefits. We compare dismissal and employment taxes in a model with search frictions. Employment taxes give rise to externalities because firms do not take into account the effects their dismissal decisions have on others. By introducing dismissal taxes to finance unemployment insurance, these externalities can partly be internalized. Taking into account the budget of the unemployment insurance, employment ta...

  11. Implicit contracts, unemployment, and labor market segmentation

    Altmann, Steffen; Falk, Armin; Huffman, David


    We analyze the impact of imperfect contract enforcement on the emergence of unemployment. In an experimental labor market where trading parties can form long-term employment relationships, we compare a work environment where effort is observable, but not verifiable to a situation where explicit contracts are feasible. Our main result shows that unemployment is much higher when third-party contract enforcement is absent. Unemployment is involuntary, being caused by firms' employment and contra...

  12. Technological Unemployment and an Attainable Way Out

    Pavlova, Adelina


    The purpose of the thesis is to analyze the available information on the technological unemployment issue. The hypothesis of the thesis is that displacement of workers because of technological development has reasonable chances to happen in the future. Technological unemployment is hotly debated issue. Some part of economists argue that technological unemployment is a short-term problem; others see it as a risk for society. Thus, at this stage it is important to identify controversy in studie...

  13. Unemployment in Galician autonomous community (Spain)

    Seoane, Maria Jesus Freire; Cristal, Venancio Salcines; Freire, Maria Jesus Bilbao


    An aspect of unquestionable transcendency is the impact of the unemployment in the current society. Most part of the countries in the European continent present as from the decade of the 70's very significant rates of unemployment. The persistence of this characteristic in the occupational market constitutes the most important fact of concern for citizens and governments. The problem of the unemployment becomes much more serious in the case of Spain, and the Galician Autonomous Community is n...

  14. Unemployment and endogenous reallocation over the business cycle

    Carrillo-Tudela, Carlos; Visschers, Ludo


    This paper studies unemployed workers’ decisions to change occupations, and their impact on fluctuations in aggregate unemployment and its underlying duration distribution. We develop an analytically and computationally tractable stochastic equilibrium model with heterogenous labor markets. In this model three different types of unemployment arise: search, rest and reallocation unemployment. We document new evidence on unemployed workers’ gross occupational mobility and use it ...

  15. Unemployment vs. In-work Benefits with Search Unemployment and Observable Abilities

    Boone, J.; Bovenberg, A.L.


    This paper explores the optimal interaction between the tax system and unemployment compensation in insuring people against the risks of involuntary unemployment and low ability.To that end, we introduce search unemployment in a model of optimal non-linear income taxation.We find that the optimal search subsidy (i.e. the difference between the in-work benefit and the unemployment benefit) increases if, for efficient agents, the participation constraint (governing job search) becomes relativel...

  16. Psychological dimensions of unemployment: a gender comparison between Belgian and South African unemployed.

    Yannick Griep; Sebastiaan Rothmann; Wouter Vleugels; Hans De Witte


    This study sought to compare South African and Belgian unemployed in their subjective experience of unemployment, committed towards employment and job search behaviour. We also considered gender differences regarding the psychological dimensions of unemployment between Belgium and South Africa. A cross-sectional survey design was used. Unemployed people were sampled from the Potchefstroom area in South Africa (N = 381) and the Brussels area in Belgium (N = 305). The Experiences of Unemploymen...

  17. [Unemployment as psychological stress and coping methods].

    Szabóné Kapuvári, Virág


    The present article focuses on unemployment as a stressor and a crisis situation as well. Both the definition and theories about this phenomenon are analyzed. The author tries to explore unemployment like a stressor and a special crisis situation afterwards illustrating it by several Hungarian results of the unemployment research. The author tries to emphasize coping methods of personality. Last but not least unemployment is presented like a special problem that could be solved by some practical aspects recommended for the professionals. PMID:24443576

  18. Urban Unemployment, Agglomeration and Transportation Policies

    Zenou, Yves


    We study the role of unemployment in the context of the endogeneous formation of a monocentric city in which firms set efficiency wages to deter shirking. We first show that, in equilibrium, the employed locate at the vicinity of the city-centre, the unemployed reside at the city-edge and firms set up in the city-centre. We then show that there is a `spatial mismatch' between location and jobs because the further away from jobs the unemployed, the larger the level of unemployment. Finally, we...

  19. Unemployment Benefits and Parental Resources: What Helps the Young Unemployed with Labour Market Integration?

    Jacob, Marita


    This article deals with the question of how different resources affect the labour market integration of the young unemployed. Previous research has often focused on the effects of unemployment compensation benefits on labour market outcomes. However, for young unemployed people additional parental resources may be even more important. The article…

  20. Unemployment vs. In-work Benefits with Search Unemployment and Observable Abilities

    Boone, J.; Bovenberg, A.L.


    This paper explores the optimal interaction between the tax system and unemployment compensation in insuring people against the risks of involuntary unemployment and low ability.To that end, we introduce search unemployment in a model of optimal non-linear income taxation.We find that the optimal se

  1. The macroeconomics of demographic unemployment.

    Carlberg, M


    "What are the macroeconomic consequences of an increase in labour supply? In the short run, unemployment occurs, due to both lack of aggregate demand and capital shortage. Demand-side policy and money wage restraint prove to be ineffective in this situation, owing to capital shortage. On the other hand, a reduction in working hours without wage compensation as well as a policy mix of both demand-side policy and investment policy turn out to be effective. The reduction in working hours lowers individual income and raises individual leisure, as compared to the policy mix." (SUMMARY IN GER) PMID:12343012

  2. House Lock and Structural Unemployment

    Robert G. Valletta


    A recent decline in geographic mobility in the United States may have been caused in part by falling house prices, through the “lock in” effects of financial constraints faced by households whose housing debt exceeds the market value of their home. I analyze the relationship between such “house lock” and the elevated levels and persistence of unemployment during the recent recession and its aftermath, using data that covers the period through the end of 2011. Because house lock will extend jo...

  3. Unemployment among breast cancer survivors

    Carlsen, Kathrine; Ewertz, Marianne; Dalton, Susanne Oksbjerg;


    cancer. METHOD: This study included 14,750 women diagnosed with breast cancer in Denmark 2001-2009 identified through a population-based clinical database and linked with information from Danish administrative population based registers for information on labour market affiliation, socio......AIM: Though about 20% of working age breast cancer survivors do not return to work after treatment, few studies have addressed risk factors for unemployment. The majority of studies on occupational consequences of breast cancer focus on non-employment, which is a mixture of sickness absence...

  4. Evolution of unemployment population stocks in Romania

    Irena MOCANU


    Full Text Available Effects of the current crisis on the evolution of the stocks of theunemployed persons in Romania. The present paper is focused on the analysis of general dynamic of the input and output flows in/from unemployment, emphasising the growth of the stocks of unemployed population, at national and county levels. The annexes of the annual progress reports published by the National Agency for Employment represent the data-base used in the study. The input flows in unemployment registered a constant evolution, but the outputflows from unemployment have fell in all counties, this evolutions being the source of stocks of unemployed persons. In 2008, a number of 31 counties have stocks of unemployed, ranging between 9,900 persons and 80 persons; in 2009, all the counties registered stocks of unemployed. The largest stocks (more than 10,000 persons were specific for some counties situated in south, south-east and centre. The majority of counties registers some multi-annual averages values of the stocks of unemployed ranging between 2,500 – 1,000 persons, the largest being in Prahova, Suceava, Galaţi, Argeş, Dolj. Between2007 - 2009, the ratio between output form unemployment (by hiring and input in unemployment (due to layoffs decreased continuously and sharply in 2009 compared to 2008: 2.8 in 2007, 2.3 in 2008 and only 0.6 in 2009. The growth of the stocks of unemployed in all counties and the decrease of ration between hiring and redundancies represent ones of the effects of the current crisis.

  5. How Changes in Unemployment Benefit Duration Affect the Inflow Into Unemployment

    van Ours, J.C.; Tuit, S.


    We study how changes in the maximum benefit duration affect the inflow into unemployment in the Netherlands. Until August 2003, workers who became unemployed after age 57.5 were entitled to unemployment benefits until the age of 65, after which they would receive old age pensions. This characteristic made it attractive for workers to enter unemployment shortly after age 57.5 rather than shortly before. Indeed, we find a peak in the inflow into unemployment for workers after age 57.5. From Aug...

  6. Unemployment Impairs Mental Health: Meta-Analyses

    Paul, Karsten I.; Moser, Klaus


    The effect of unemployment on mental health was examined with meta-analytic methods across 237 cross-sectional and 87 longitudinal studies. The average overall effect size was d = 0.51 with unemployed persons showing more distress than employed persons. A significant difference was found for several indicator variables of mental health (mixed…

  7. The Gendered Consequences of Unemployment Insurance Reforms

    Mooi-Reci, Irma; Mills, Melinda


    This study examines whether a series of unemployment insurance benefit reforms that took place over a 20-year period in the Netherlands had a gendered effect on the duration of unemployment and labor market outcomes. Using longitudinal data from the Dutch Labor Supply Panel (OSA) over the period 1980-2000, and adopting a quasi-experimental design,…

  8. Unemployment in Families: The Case of Housework

    Gough, Margaret; Killewald, Alexandra


    Unemployment has consequences for individuals, but its impacts also reverberate through families. This paper examines how families adapt to unemployment in one area of life--time in housework. Using 74,881 observations from 10,390 couples in the Panel Study of Income Dynamics, we estimate fixed effects models and find that individuals spend…

  9. "Learning to Do" during High Unemployment

    Rhee-Weise, Michelle; Horn, Michael B.


    Even as the economy appears to have turned a corner, high unemployment persists. Strangely, as millions nationwide struggle to find work, there are millions of jobs that remain unfilled. High unemployment rates may therefore have less to do than commonly assumed with an economy that is not healthy enough to produce jobs or employers who are…

  10. Aggregate Unemployment Decreases Individual Returns to Education

    Ammermueller, Andreas; Kuckulenz, Anja; Zwick, Thomas


    Aggregate unemployment may affect individual returns to education through qualification-specific responses in participation and wage bargaining. This paper shows that an increase in regional unemployment by 1% decreases returns to education by 0.005 percentage points. This implies that higher skilled employees are better sheltered from labour…

  11. Firing Costs, Payroll Taxes and Unemployement

    Gavrel, Frédéric; Lebon, Isabelle


    Using a simple extension of Mortensen and Pissarides (1994), we show that substituting layoff taxes for payroll taxes reduces unemployment. Indeed, layoff taxes lead the firms to internalize the effect of dismissals on unemployment costs. So countries which have costly employment protection procedures (as happens in continental Europe) have much to gain in replacing them by firing taxes.

  12. Unemployed citizen or 'at risk' client?

    Larsen, Jørgen Elm; Caswell, Dorte; Marston, Greg


    The paper explores recent developments in Australian and Danish unemployment policies with a special focus on the technologies used to classify and categorize unemployed people on government benefits. Using governmentality as our theoretical framework, we consider the implications of reducing com...

  13. The Gendered Consequences of Unemployment Insurance Reforms

    Mooi-Reci, Irma; Mills, Melinda


    This study examines whether a series of unemployment insurance benefit reforms that took place over a 20-year period in the Netherlands had a gendered effect on the duration of unemployment and labor market outcomes. Using longitudinal data from the Dutch Labor Supply Panel (OSA) over the period 198

  14. Youth Unemployment. The Causes and Consequences.

    Organisation for Economic Cooperation and Development, Paris (France).

    This report examines the causes and consequences of youth unemployment in Organisation for Economic Cooperation and Development (OECD) member countries. Summarized first is the youth unemployment situation since the 1974/1975 recession. In a section on recent developments in youth labor markets a series of tables and graphs provide data on youth…

  15. Unemployment Insurance Benefit Levels and Consumption Changes

    Browning, Martin; Crossley, Thomas

    We use a survey of unemployed people to examine how a job loss impacts on household expenditures. The principal focus is on the effect of the level of income replacement provided by Unemployment Insurance. We restrict attention to a sub-sample of respondents who are still in their first spell of...

  16. Chronic Unemployment: A Social Work Perspective.

    Sherraden, Michael W.


    To address chronic unemployment more effectively, social workers can describe the problem accurately, collect data by type of unemployment (frictional, structural, cyclical and chronic), document negative human effects, emphasize economic consequences, document the unequal burden on nonwhites, and lobby for long-term employment policy…

  17. Transfer of Pollution Abatement Technology and Unemployment

    Muneyuki Saito; Yasuyuki Sugiyama


    This paper investigates the effects of the transfer of pollution abatement technology on the level of urban unemployment, the total amount of pollution, and social welfare in a small, open Harris Todaro economy. We show that these transfers reduce urban unemployment and decrease the total amount of pollution. However, social welfare is unchanged because the technology transfer does not affect factor prices.

  18. Unemployment and health: physicians' role.

    Guirguis, S S


    Unemployment has been documented to have detrimental impacts on a person's mental, physical and social well being. When unemployment or being out of work is due to injury or sickness, the effects are compounded by mental and social factors. In an effort to prevent prolonged unemployment due to injury or sickness, changes were made to existing disability income supplement plans to redirect their focus from basic income support to active employment measures. This is intended to reduce individual's dependency on financial assistance and encourage individuals to take personal responsibility for getting back to work. The various disability insurance plans require primary care physicians to provide opinion and participate in the recovery and safety return to work of injured or sick persons. The physician approach to medical care of the injured/sick person with employment problems should focus on return to work as a goal of treatment. The patient should be seen as part of a social or environmental system and not as an isolated individual. The physician has a significant role to play in the diagnosis, determining functional abilities and participation in the return to work plan. The physician positive participation, not only provides an intrinsic cost saving value in insurance costs, but more important, helps patients maintain gainful employment. Work often helps in regaining health. Many factors are involved in a return to work outcome and physicians need to know how to identify and track the factors that facilitate or impede return to work. The challenge for the physician is to utilize the available resources to facilitate the recovery and communicate with other parties involved in the return to work process. This paper discusses the disability insurance plans in Canada and the community expectations from physicians dealing with patients who are out of work because of injury or sickness. It is acknowledged that primary care physicians' skills are not adequate in this

  19. Impact of Unemployment on Crime in Europe

    Li-Hsuan Huang


    Full Text Available This study discovers how unemployment rate explains the changes in the crime rate tendency in Europe by the two-stage-least square regression. The crime rate in the Economic and Monetary Union (EMU area is found evidently more sensitive to unemployment than the non-EMU countries. The adoption of a common currency also strengthens the connections of the criminal problem among the EMU countries. We found the seriousness of the endogenous bias involved using the OLS methodology, so previous findings on the small effect of unemployment on crime rate obtained by employing the OLS methodology could be unreliable. Empirically, a one-percentage-point increase in unemployment increases the property crime by nearly 9% on average. The large unemployment effect implies that the increase in the unemployment rate that occurred after the financial crisis in 2008, followed by the European sovereign-debt crisis, may account for the trending increasing tendencies of the crime rate in Europe. The high unemployment effect revealed markedly different policy implications than those that have previously been considered in the literature. These findings suggest that the key determinants for governmental authorities in the EMU area successfully mitigating crime would greatly depend on how the governments resolve their economic recession.

  20. Capital Market and Unemployment in Nigeria

    Bamidele M. Ilo


    Full Text Available This paper examines how the Nigerian capital market affects unemployment in Nigeria with a view to identifying how the market has been able to curtail unemployment over the years or otherwise. It employes annual series data from 1986 to 2012 on unemployment, market capitalization and other data obtained from the Central Bank of Nigeria, Statistical Bulletin. The study adopts the Johansson cointegration vector error correction technique for data analysis. The result shows that unemployment has risen unabatedly since the adoption of Structural Adjustment Programme (SAP with an average unemployment rate of 8.12 per cent for the period while market capitalization relative to the size the economy is 14.42 per cent. The analysis also shows that while, economic growth significantly curtails unemployment capital market development fails to limit unemployment. The stock market thus has grown over the years at the expense job creation in Nigeria. It is expected that efforts are geared towards efficient capital market development to enhance mobilization of funds for long term investments by firms and propel job creation along the value chain. The government should also focus on developing those labour intensive sectors of the economy while pursuing its economic growth policy.

  1. Tunisia’s Revolution and Youth Unemployment

    Mohamed Siala


    Full Text Available Youth joblessness was one of the main triggers of Tunisia’s January Revolution. Unemployment rate in Tunisia has increased from 13 percent in 2010 to 18.3 percent in 2011 (NIS, 2011. Young people and women are more affected by this increase in unemployment .Thus, the purpose of this study is to examine the effects of various individual and job-related characteristics on the probabilities of unemployment of females and males aged 15–29 and to explore policy actions to create jobs in Tunisia. These issues are addressed using data from a 2010 survey of the National Institute of Statistics that provided information on the employment status of youth aged 15–29. The main estimated results show first that individual’s age, gender, marital status, level of education, sector of economic activity, type of employment and region of residence are significantly related to the unemployment. The results indicate that, for young workers, unemployment incidence increases with the level of education. Education has a greater impact on the unemployment of females than on that of males. Second, there is a negative and significant effect of the agricultural, educational and health sectors on the probability of transition into unemployment for women and men in which case the estimated impact is greater for men. Third, coastal area and public employment are associated with lower probability of transition into unemployment. Finally, Tunisian policymakers are aware of the fact that the elected National Constituent Assembly and the transitional government have a set of challenging tasks to accomplish in order to lower the rate of youth unemployment. For instance, generating funds for business development and infrastructure in non-coastal regions, and collaborating with the private sector to promote investment– whether foreign or domestic – and employment for educated young people.

  2. Contractual Incompleteness, Unemployment, and Labour Market Segmentation

    Altmann, Steffen; Falk, Armin; Grunewald, Andreas;


    This article provides evidence that involuntary unemployment, and the segmentation of labour markets into firms offering "good" and "bad" jobs, may both arise as a consequence of contractual incompleteness.We provide a simple model that illustrates how unemployment and market segmentation may...... jointly emerge as part of a market equilibrium in environments where work effort is not third-party verifiable. Using experimental labour markets that differ only in the verifiability of effort, we demonstrate empirically that contractual incompleteness can cause unemployment and segmentation. Our data...

  3. The unhappily unemployed return to work faster

    Mavridis, Dimitris


    This paper shows that job loss is associated with a fall in subjective well-being (SWB). It then looks at how this change in SWB predicts job search and unemployment duration. The findings suggest that those who report feeling hurt by unemployment have shorter unemployment durations. Men who report a loss of SWB are also more likely to look for a job, but women’s job search is not affected by the SWB loss. These findings confirm the theoretical prediction from job search theory: search effort...

  4. Benefit Reentitlement Conditions in Unemployment Insurance Schemes

    Andersen, Torben M.; Christoffersen, Mark Strøm; Svarer, Michael

    Unemployment insurance schemes include conditions on past employment history as part of the eligibility conditions. This aspect is often neglected in the literature which primarily focuses on benefit levels and benefit duration. In a search-matching framework we show that benefit duration and...... employment requirements are substitute instruments in affecting job search incentives and thus gross unemployment. We analyse the optimal design of the unemployment insurance system (benefit levels, duration and employment requirements) under a utilitarian social welfare function. Simulations show that a...... higher insurance motive captured by more risk aversion implies higher benefit generosity and more lax employment requirements but also shortened benefit duration....

  5. Education and Youth Unemployment in South Africa

    David Lam; Murray Leibbrandt; Cecil Mlatsheni


    The problem of high youth unemployment is a global phenomenon. According to an International Labour Office study in 2004, youth (15-24) make up nearly half (47%) of the world's unemployed, 88 million out of 186 million, even though youth are only 25% of the world's working age population. Of the world's 550 million working poor who cannot lift themselves above US $1 per day poverty measure, 150 million are youth. The ILO estimated in 2004 that halving global youth unemployment would increase ...

  6. Unemployment as a factor of entrepreneurial activity

    Sebastian Șipoș-Gug


    Full Text Available We aim to investigate the nature and direction of the relationship between unemployment and entrepreneurial activity. Our research, using monthly data from Romania (1991-2012, brings evidence to the hypothesis that the relationship is non-linear in regard to the temporal delay factor. From our data it would seem that unemployment and entrepreneurial activity are negatively related on the short term, and positively related on the long term. Based on these results, we propose that the two effects be treated separately, and we propose two predictive models of entrepreneurial activity based on unemployment that follow this distinction.

  7. Age structure and the UK unemployment rate

    Richard Barwell


    The proportion of youths in the labour force has fallen dramatically over the past 15 years, following the collapse in the fertility rate in the 1970s ('the baby bust'). Given that youths always have higher unemployment rates than adults, this shift in the composition of the labour force towards those with lower unemployment rates may have been responsible for a fall in the aggregate unemployment rate. Using data from the Labour Force Survey, it is estimated that about 55 basis points of the ...

  8. 20 CFR 625.8 - Applications for Disaster Unemployment Assistance.


    ... 20 Employees' Benefits 3 2010-04-01 2010-04-01 false Applications for Disaster Unemployment... LABOR DISASTER UNEMPLOYMENT ASSISTANCE § 625.8 Applications for Disaster Unemployment Assistance. (a... unemployment shall be filed with respect to the individual's applicable State at the times and in the manner...

  9. 20 CFR 325.4 - Claim for unemployment benefits.


    ... 20 Employees' Benefits 1 2010-04-01 2010-04-01 false Claim for unemployment benefits. 325.4 Section 325.4 Employees' Benefits RAILROAD RETIREMENT BOARD REGULATIONS UNDER THE RAILROAD UNEMPLOYMENT INSURANCE ACT REGISTRATION FOR RAILROAD UNEMPLOYMENT BENEFITS § 325.4 Claim for unemployment benefits....

  10. Entrepreneurship Education and Graduates Unemployment in Oyo State, Nigeria

    Emunemu, B. O.; Kasali, O. J.


    This study investigated entrepreneurship and graduates' unemployment in Nigeria.The problem of unemployment in Nigeria has become endemic. There have been reported cases of under-employment, seasonal, casual and full blown unemployment. Previous studies on unemployment and factors influencing it in Nigeria identify poor educational standards,…

  11. Reducing Urban Unemployment. What Works at the Local Level.

    McCarthy, William H.; And Others

    This booklet considers the problems of urban unemployment and presents 21 case studies of urban areas dealing with the problem. The first chapter defines urban unemployment and classifies barriers to employment, trends in unemployment, and types of unemployed persons. Chapter 2 describes some general principles necessary to successfully combat the…

  12. How much of the decline in unemployment is due to the exhaustion of unemployment benefits?

    Luojia Hu; Shani Schechter


    Prior studies have examined the impact of extended unemployment insurance (UI) benefits on the rise in the unemployment rate in this recession and early recovery. We use real-time microdata from the Bureau of Labor Statistics’ Current Population Survey (CPS) to examine whether there has been a reverse effect recently as benefits have been exhausted. We find that if UI benefits had lasted indefinitely, the unemployment rate would have been cumulatively about 0.1 to 0.3 percentage points higher...

  13. To be unemployed is not to be dependent. The politics of narratives surrounding unemployment

    Andersen, Mathias


    Based on six months of fieldwork in London in the first half of 2012, this thesis aims to understand how unemployment is a situation that is understood in different ways based on political understanding and moral categories. I want to contribute to the anthropological understanding of unemployment by studying the political resistance as a reaction to unemployment being explained in individual terms. This thesis problematizes a certain form of individuality that informs how people might interp...

  14. Literacy, CETA, and Unemployment: Coming Up Empty.

    Coles, Gerald; Coppel, Lynn


    Analyzes low literacy levels among Comprehensive Employment and Training Act (CETA) applicants in New Brunswick, New Jersey. Discusses how cutbacks in CETA funding will adversely affect attempts to decrease illiteracy among unemployed, low-income, urban adults. (GC)

  15. Do conditional benefits reduce equilibrium unemployment?

    F. van der Ploeg


    Although unconditional unemployment benefits destroy jobs in competitive and noncompetitive labor markets, conditional benefits can spur job growth in noncompetitive labor markets. Unconditional benefits reduce the penalty of shirking and misconduct, while conditional benefits increase this penalty.

  16. Unemployment dynamics with international capital mobility

    Azariadis, Costas; Pissarides, Christopher


    We study the response of domestic unemployment rates to shocks in total factor productivity for economies with high capital mobility and low labour mobility. We show that rapid capital movements across national borders, like those experienced by developed nations in the last twenty years, substantially amplify the impact on the domestic unemployment rate of domestic fluctuations in total factor productivity relative to what would have happened in a closed economy, shorten the duration of the ...

  17. Unemployment Insurance and Job Turnover in Spain

    Yolanda Rebollo Sanz


    The aim of this paper is to shed some light on the potential relationships between the unemployment insurance system and labour market turnover, seeking to further the traditional view that this system has only behavioural consequences for the labour supply side of the labour market. This study assumes the incentives embedded in the unemployment insurance system have a heterogeneous impact, depending on the type of labour market transition (quits versus layoffs and recalls versus new job entr...

  18. Crises, Labor Market Policy, and Unemployment

    Davide Furceri; Lorenzo E Bernal-Verdugo; Dominique M. Guillaume


    Using a sample of 97 countries spanning the period 1980?2008, we estimate that financial crises have a large negative impact on unemployment in the short term, but that this effect rapidly disappears in the medium term in countries with flexible labor market institutions, whereas the impact of financial crises is less pronounced but more persistent in countries with more rigid labor market institutions. These effects are even larger for youth unemployment in the short term and long-term unemp...

  19. Unemployment and the "Labour-Management Conspiracy"

    Karp, Larry; Paul, Thierry


    Management and a union bargain sequentially, first choosing a contract which will later determine the level of employment, and those choosing a wage. The government then chooses an output subsidy, after which the industry chooses employment according to the contract. The presence of a natural turnover rate in the unionized sector creates unemployment whenever the union wage exceeds the competitive wage. Government intervention can increase both the equilibrium amount of unemployment and worse...

  20. Unemployment Insurance, Job Search, and Informal Employment

    Margolis, David N.; Navarro, Lucas; Robalino, David A.


    This paper analyses the potential impacts of introducing unemployment insurance (UI) in middle income countries using the case of Malaysia, which today does not have such a system. The analysis is based on a job search model with unemployment and three employment sectors: formal and informal wage employment, and self employment. The parameters of the model are estimated to replicate the structure of the labor market in Malaysia in 2009 and the distribution of earnings for informal, formal and...

  1. Product Market Reforms and Unemployment in Europe

    Gersbach, Hans; Schniewind, Achim


    In this paper we study how promoting product market competition by reducing mark-ups or by increasing productivity are able to complement labor market reforms. We use a simple general equilibrium model with different types of labor. The bottom-line of the paper is that product market reforms will help to reduce aggregate unemployment under many circumstances even though sectoral unemployment may increase. We also highlight that the mobility of high-skilled workers and the distribution of unem...

  2. The Duration of Unemployment in Russia

    Gogran, L.; Berg, van den, V.A.C.


    This paper uses longitudinal survey data to assess factors affecting the duration of unemployment in Russia. We examine four types of marginalised labour force participants, according to ILO guidelines and survey responses, and we estimate duration models for each type. It turns out that the sets of characteristics with the strongest effects on the duration are remarkably similar across the different unemployment definitions and model specifications. Therefore, despite the formidable practica...

  3. Measuring structural unemployment: Some neglected issues

    Paqué, Karl-Heinz


    This paper is no more than a critical note on the mismatch philosophy. Its main point is that, under empirically acceptable assumptions, all measures developed so far - and probably all measures likely to emerge from refining the mismatch tools - are bound to seriously underestimate the extent of structural unemployment by any reasonable standard. For all that matters empirically, no period with a high share of mismatch in total unemployment is ever likely to emerge. Hence, if structural mean...

  4. The Consumption Smoothing Benefits of Unemployment Insurance

    Jonathan Gruber


    Previous research on unemployment insurance (UI) has focused on the costs of the program, in terms of the distorting effects of generous UI benefits on worker and firm behavior. For assessing the optimal size of an unemployment insurance program, however, it is also important to gauge the benefits of increased UI generosity, in terms of smoothing consumption across periods of joblessness. I do so through a reduced form approach which directly measures the effect of legislated variations in UI...

  5. Does European Unemployment Prop up American Wages?

    Davis, Donald R.


    We consider trade between a flexible wage America and a rigid real wage Europe. In a benchmark case, a move from autarky to free trade doubles the European unemployment rate, while it raises the American unskilled wage to the high European level. Entry of the unskilled South to world markets raises unemployment in Europe. But Europe's commitment to the high wage completely insulates America from the shock. Immigration to America raises American income, but lowers European income dollar-for-do...

  6. Search Unemployment and New Economic Geography

    vom Berge, Philipp


    This paper develops a general equilibrium geographical economics model which uses matching frictions on the labor market to generate regional unemployment disparities alongside the usual core-periphery pattern of industrial agglomeration. In the model, regional wage differentials do not only influence migration decisions of mobile workers, but also affect the bargaining process on local labor markets, leading to differences in vacancies and unemployment as well. In a setting with two regio...

  7. Agglomeration, Congestion, and Regional Unemployment Disparities

    Zierahn, Ulrich


    Regional labor markets are characterized by huge disparities of unemployment rates. Models of the New Economic Geography explain how disparities of regional goods markets endogenously arise but usually assume full employment. This paper discusses regional unemployment disparities by introducing a wage curve based on efficiency wages into the New Economic Geography. The model shows how disparities of regional goods and labor markets endogenously arise through the interplay of increasing return...

  8. Unemployment and Psychological Well-Being

    Nick Carroll


    Who records the largest drops in life satisfaction when they move into unemployment? Do men experience a larger drop in life satisfaction than women? Do Australians and Americans record a larger drop than Europeans? Using an Australian panel data-set (the Household Income and Labour Dynamics Survey of Australia), this paper finds that the unemployed in Australia report lower life satisfaction than observationally equivalent employed people (holding current income constant). Being currently un...

  9. The analysis of unemployment in the Czech Republic

    Hafenrichterová, Alena


    The thesis titled The analysis of unemployment in the Czech Republic is focused on current issues in the labour market and the analysis of unemployment in the period from 2000 to 2010. The first part of the Bachelor thesis describes in more detail the characteristics of the labour market and unemployment from the standpoint of economic theory. Describing basic concepts, different types of unemployment and how to measure unemployment. The second part deals with a brief characteristic...

  10. Unemployment and endogenous reallocation over the business cycle

    Visschers, Ludo; Carrillo-Tudela, Carlos


    This paper studies unemployed workers’ decisions to change occupations, and their impact on fluctuations in aggregate unemployment and its underlying duration distribution. We develop an analytically and computationally tractable stochastic equilibrium model with heterogenous labor markets. In this model three different types of unemployment arise: search, rest and reallocation unemployment. We document new evidence on unemployed workers’ gross occupational mobility and use it to calibrate th...

  11. Unemployment and Endogenous Reallocation over the Business Cycle

    Carlos Carrillo-Tudela; Ludo Visschers


    This paper studies unemployed workers’ decisions to change occupations, and their impact on fluctuations in aggregate unemployment and its underlying duration distribution. We develop an analytically and computationally tractable stochastic equilibrium model with heterogenous labor markets. In this model three different types of unemployment arise: search, rest and reallocation unemployment. We document new evidence on unemployed workers’ gross occupational mobility and use it to calibrate th...

  12. The length of spells of unemployment in ireland

    Omahony, M


    Abstract- This paper examines the average length of a spell of unemployment in the Irish Republic. The analysis is conducted using two measures, one emphasising the flow of persons into unemployment and the other concentrating on the stock of currently unemployed individuals. These measures imply long average durations for the unemployed in Ireland both in absolute terms and relative to their British counterparts. Some of the traditional structural aspects of Irish unemployment, i.e., the hig...

  13. The unemployment inflation trade-off in the euro area

    Linzert, Tobias


    This paper analyzes the relationship between unemployment and wage inflation for 10 of the euro area countries. The combination of low wage inflation and high unemployment in Europe is usually attributed to a rise in the natural rate of unemployment. Using a panel data approach, this paper models directly the specific structural determinants of the natural rate of unemployment that may account for a changing pattern in the unemployment inflation trade-off. Moreover, it analyzes whether the re...

  14. Education and Unemployment : A French-German Comparison

    Lauer, Charlotte


    This paper analyses the link between educational attainment and unemployment risk in a French-German comparison, based on a discrete time competing risks hazard rate model applied to comparable microdata sets. The unemployment risk is broken down into the risk of entering unemployment and the risk, once unemployed, of not getting reemployed. The paper examines the impact of education on both risk components. France faces a higher unemployment rate than West-Germany, due to a higher risk of en...

  15. Race and the Incidence of Unemployment in South Africa

    Geeta Kingdon; John Knight


    South Africans unemployment rate is one of the highest in the world, and it has important distributional implications. The paper examines the incidence of unemployment using two national household surveys for the mid-1990s. Both entry to unemployment and the duration of unemployment are examined. A probit model of the determinants of unemployment is estimated: it shows an important role for race, education, age, gender, home-ownership, location, and numerous other variables, all of which have...

  16. Race and the Oncidence of Unemployment in South Africa

    Geeta Kingdon; John Knight


    South Africa’s unemployment rate is one of the highest in the world, and it has important distributional implications. The paper examines the incidence of unemployment using two national household surveys for the mid-1990s. Both entry to unemployment and the duration of unemployment are examined. A probit model of the determinants of unemployment is estimated: it shows an important role for race, education, age, gender, home-ownership, location, and numerous other variables, all of which have...

  17. Designing a Cheaper and More Effective Unemployment Benefit System

    Melvyn G. Coles


    This paper describes an equilibrium labour market in which an unemployment benefit system cannot raise the average value of being unemployed in the long run. It proposes an alternative benefit system which pays generous benefit rates when unemployment is high, but pays much lower rates in booms. By targeting unemployment compensation to recessions, when being unemployed is particularly costly, this policy provides insurance equivalent to that provided by the current system. By reducing the va...

  18. The Ins and Outs of Unemployment: The Ins Win


    This paper develops a framework for analyzing unemployment in terms of variations in the nt.imber and distribution of people becoming unemployed and in individual probabilities of leaving unemployment. Contrary to the emphasis on exit probabilities in the recent macroeconomics literature, we present empirical evidence in support of the proposition that changes in the size and distribution of the inflow Into unemployment are the primary determinant of the unemployment rate. Instead of falling ...

  19. Cultures of Unemployment : A Comparative Look at Long-Term Unemployment and Urban Poverty

    Engbersen, Godfried; Schuyt, Kees; Timmer, Jaap; Waarden, van Frans


    In the 1980s a team of Dutch sociologists conducted a study on the daily life of unemployed in the Netherlands. They were inspired by the classical work Marienthal: the Sociology of an Unemployed Community first published in 1933. The authors conducted three neighborhood studies to analyze the socia

  20. Community unemployment and immigrants' health in Montreal.

    Zunzunegui, Maria-Victoria; Forster, Mathieu; Gauvin, Lise; Raynault, Marie-France; Douglas Willms, J


    This research examines the relationship between community unemployment and the physical and mental health of immigrants in comparison to non-immigrants in Montreal under the hypothesis that high unemployment in the community may generate more negative effects on the health of immigrants than on non-immigrants. Possible gender differences in these associations are also examined. Montreal residents were studied via multilevel analysis, using both individual survey data and neighbourhood data from 49 police districts. Individual-level data were excerpted from a 1998 health survey of Montreal residents, while neighbourhood data originated from survey data collected in the 49 Montreal police districts and the 1996 Canadian Census. The associations between community unemployment and self-rated health, psychological distress and obesity are examined, and hypotheses regarding the modifying mechanisms via which male and female immigrants may run a greater risk of poor health than non-immigrants when living in areas of high unemployment were tested. Between neighbourhoods, variations in the three health outcomes were slight, and differences in health were not associated with differences in community unemployment. The associations between community unemployment and health varied according to immigration status. At the individual level, immigrants do not differ from non-immigrants with respect to the three health indicators, except that second-generation males are slightly heavier. However, when living in areas of high unemployment, immigrants tend to report poor physical and mental health in comparison to non-immigrants. Among first-generation immigrants, community unemployment was associated with psychological distress. Among second-generation immigrants, the probability of obesity and poor self-rated health increased significantly for those living in areas with high unemployment, but these associations reached statistical significance only for men. Findings among first

  1. Economic Growth and Unemployment: An Empirical Analysis

    Fuad M. Kreishan


    Full Text Available Problem statement: This research investigates the relationship between unemployment and economic growth in Jordan through the implementation of Okun’s law. Approach: Using annual data covering the period 1970-2008, time series techniques are used to test the relation between unemployment and economic growth and to obtain estimates for Okun’s coefficient. Namely, the study used Augmented Dickey-Fuller (ADF for unit root, cointegration test and a simple regression between unemployment rate and economic growth. Results: The empirical results reveal that Okun’s law cannot be confirmed for Jordan. Thus, it can be suggested that the lack of economic growth does not explain the unemployment problem in Jordan. Conclusion: The study recommended that economic policies related to demand management would not have an important effect in reducing unemployment rate. Accordingly implementation of economic policies oriented to structural change and reform in the labor market would be more appropriate by policy makers in Jordan.

  2. Structural change and long-term unemployment in Ireland

    Eric Strobl; Patrick P. Walsh


    In this paper we investigate the build-up in male long-term unemployment by allowing for heterogeneity both in the unemployment inflow and conditional survival rates. We construct semi-annual series of the male flows into and out of the Irish Live Register for the period 1967 to 1995 and develop a methodology that allows us to decompose the unemployment inflow by age and unemployment scheme and the unemployment outflow by duration of spell, age and unemployment scheme. Our results in conjunct...

  3. Wages, unemployment, and the underground economy

    Kolm, Ann-Sofie; Larsen, Birthe


    impact of higher punishmentrates and a higher audit rate on labour market performance. We findthat a higher punishment rate reduces the size of the informal sectorand reduces unemployment. A higher audit rate has an ambiguousimpact on unemployment, and may actually increase the size of theunderground......While examining the macroeconomic effects of increased governmentcontrol of the informal sector, this paper develops a two-sectorgeneral equilibrium model featuring matching frictions and worker-firm wage bargaining. Workers search for jobs in both the formaland the informal sector. We analyse the...

  4. Policy-Making in Unemployment Services:

    Caswell, Dorte; Høybye-Mortensen, Matilde

    The development of paternalist policies, such as the increase of punitive methods in welfare services, has been identified and analysed internationally (Mead, 1998; Soss et al., 2011a). The combination of these with an emphasis on instruments such as competition and performance measurement has been...... have gained more political legitimacy and are being more widely used as a tool to improve the willingness of the unemployed clients to participate in activities under the canopy of active labour market policy. This does not only affect unemployed people, who are highly employable, but also those who...

  5. Equilibria with Unemployment in Segmented Labor Markets

    Dimitri G. Demekas


    The paper proves four theorems in an n-sector model of a segmented labor market, with search costs, and a continuum of workers with different reservation wages, who can apply to any number of sectors. The main conclusions are that: (i) an equilibrium with unemployment always exists; and (ii) some of the unemployment is involuntary, in the sense that it consists of workers with reservation wages below the equilibrium wage in the secondary market. These conclusions hold in the case of both sepa...

  6. Hysteresis in Unemployment: Evidence from Norwegian Counties

    Johansen, Kåre


    The paper tests hysteresis effects in unemployment using aggregate and panel data for Norway. While tests using aggregate or county—specific time series do not reject the null of unit root hysteresis, the panel tests firmly reject the null. When a one—time structural break is incorporated, the unit root hypothesis is rejected (or nearly so) in most counties. All results reveal a high degree of unemployment persistence, but the speed of adjustment is much higher when we allow for a change in m...

  7. Long term youth unemployment or disposable workforce?

    Bruno Contini; Elisa Grand


    This paper explores a process which I denote as “young workforce disposal” (YWD). YWD reflects the fact that many young people enter the labor market as dependent employees, at some later time they are dismissed and (presumably) move into never-ending unemployment. Long term unemployment may last two, three, four years, but, in the end, it should lead to re-entry in working activities. If it does not, i.e. if we observe young men separating from their jobs for whatever reason, and, for as lon...


    Savu Mihaela


    Full Text Available The mankind progress is built on economic growth.Yet, the high rates of economic growth must be properly used and correlated with other macroeconomic indicators in order to get the aimed effects.At the Romanian economic level, there is an inverse ratio connection between the gross domestic product and the unemployed number, a connection of low intensity.The correlation of these two indicators was established using parametric and nonparametric methods of analyzing the statistic connection using the informatic soft. Setting the recession function allows us to calculate the unemployed number depending on the forecasting of the economic growth in Romania.

  9. Are Home Owners Really More Unemployed?

    Svarer, Michael; Munch, Jakob Roland


    jobs, which is in accordance with the predictions from our theoretical model. The overall hazard rate into employment is higher for homeowners, such that there is a negative correlation between homeownership and unemployment duration. Our empirical findings thus contradict the so-called Oswald......This paper investigates the effects of homeownership on labour mobility and unemployment duration. We distinguish between finding employment locally or being geographically mobile. We find that homeownership hampers the propensity to move for job reasons, but improves the chances of finding local...

  10. The Dynamics of Unemployment: Job Loss and Job Search.

    Amundson, Norman E.; Borgen, William A.


    Examines the dynamics of unemployment in terms of job loss and job search. Compares job loss to the grieving process and job search to burnout. Describes counseling strategies for people at various stages in the unemployment process. (Author)

  11. Is Longer Unemployment Rewarded with Longer Job Tenure?

    Kohara, Miki; Sasaki, Masaru; Machikita, Tomohiro

    This paper examines whether or not a prolonged unemployment period can raise the quality of job matching after unemployment. We focus on job tenure as an indicator of a good quality job match after unemployment. We match two sets of Japanese administrative data compiled by the public employment...... security offices: one includes information about the circumstances of job seekers receiving unemployment insurance, and the other includes information about job seekers applying for jobs. We first show a negative relationship between unemployment duration and the subsequent job duration. Restricting the...... sample to job seekers who changed search behaviors in the final 59 days before expiration of unemployment insurance, we secondly show an even greater negative effect of unemployment duration on the following job duration. The importance lies not only in the duration of unemployment. If job seekers keep a...

  12. Health and Health Care Utilization among the Unemployed

    Åhs, Annika


    The number of persons who are not employed has increased in Sweden since the early 1990s. Unemployment has been found to influence health, especially when unemployment rates are low. The extent to which unemployment affects health when unemployment is high is less clear, and this needs to be further studied. To improve health in the population, the health care system should offer equal access to health care according to need. It is important to study whether the employment status hinders the ...

  13. Unemployment of Non-western Immigrants in the Great Recession

    Cervený, J.; van Ours, J.C.


    Abstract: This paper examines whether unemployment of non-western immigrant workers in the Netherlands was disproportionally affected by the Great Recession. We analyze unemployment data covering the period November 2007 to February 2013 finding that the Great Recession affected unemployment rates of non-western immigrant workers in absolute terms more than unemployment rates of native workers. However, in relative terms there is not much of a difference. We also find that the sensitivity of ...

  14. Individuals' Unemployment Experiences: Heterogeneity and Business Cycle Effects

    Kalwij, Adriaan S.


    This study examines individuals? unemployment experiences from the age of 18 up to the age of 35 using a large panel of administrative records on unemployment related benefit claims of men in the United Kingdom over the past two decades. The main focus is on the extent to which individuals? unemployment experiences are affected by regional and skill differences, i.e. individual heterogeneity, and the business cycle. In particular this study analyses the extent to which repeated unemployment i...

  15. Business cycles and compositional variation in U.S. unemployment

    Abbring, Jaap; Berg, Gerard; Ours, Jan


    In the past decades several features of U.S. unemployment dynamics have been investigated empirically. The original focus of research was on the duration of unemployment. In later studies the cyclicality of incidence and duration, compositional effects and duration dependence of the exit rate out of unemployment have been investigated. Unlike the partial approach of previous studies this paper takes all elements of unemployment dynamics simultaneously into account. We find that cyclical fluct...

  16. How to Embrace Change: Provincial Unemployment After the 2008 Recession

    Karpenko, Yevgeniya


    Five years after the 2008 recession, provincial unemployment rates in Canada remain higher than pre-recession levels. In some provinces, initial declines in unemployment have plateaued. When structural changes occur, a higher unemployment rate can persist even after a full economic recovery. This study undertakes an empirical analysis of provincial panel data to uncover potential causes of persistent unemployment across Canada. The results indicate that, after the recession, the structural co...

  17. Long-Term Unemployment in the Varieties of Capitalism

    Chilosi, Alberto


    Usually, when the attention is focused on the different performances of the labour market, the overall rate of unemployment is at the center stage. But this is misleading: while short term unemployment can be seen as physiological for the the working of the labour market, long-term unemployment is certainly pathological. The paper considers how the different varieties of capitalism affect the rate of long-term unemployment, rather than the aggregate rate. The liberal market variety, where emp...

  18. Is longer unemployment rewarded with longer job tenure?

    Kohara, Miki; Sasaki, Masaru; Machikita, Tomohiro


    This paper examines whether or not a prolonged unemployment period can raise the quality of job matching after unemployment. We focus on job tenure as an indicator of a good quality job match after unemployment. We match two sets of Japanese administrative data compiled by the public employment security offices: one includes information about the circumstances of job seekers receiving unemployment insurance, and the other includes information about job seekers applying for jobs. We first show...

  19. The search for success: do the unemployed find stable employment?

    Böheim, René; Taylor, Mark P


    This paper uses an independent competing risks framework to model job tenure, with previous labour market status and the duration of the preceding unemployment spell as explanatory variables. We find that jobs that follow an unemployment spell have shorter mean duration than other jobs. Less than one half of jobs that follow unemployment last for twelve months. Multivariate results suggest that an unemployment spell has a severe penalty on subsequent job tenure. However, men and women who spe...

  20. The Problem with Structural Unemployment in the U.S.

    Dean Baker


    Following the most recent recession, an attempt has been made to explain current levels of unemployment as resulting from structural unemployment, or a mismatch between the skills of the unemployed and the types of jobs available. The evidence, however, indicates that the issue is actually a lack of aggregate demand. Since accepting one of these views over the other will lead to very different policy solutions, it is important to accurately assess the cause of unemployment. This issue brief f...

  1. new jobs or recalls? flow dynamics in austrian unemployment reconsidered

    Pichelmann, Karl; Riedel, Monika


    abstract: the results of this study demonstrate the importance of explicitly accounting for the possibility of recalls in the analysis of unemployment composition and the determinants of unemployment spell durations in austria. in our sample covering unemployment spells in 1985 we find that recalls accounted for nearly one half of the employment to unemployment to re-employment transitions with the probability of recall being mainly dependent on industry and job characteristics related to sea...

  2. Decomposition of Unemployment: The Case of the Visegrad group countries

    Michal Tvrdoň


    Generally, economic performance declines and the unemployment rate rises during the economic crisis. This relationship was confirmed in the past several crises. Moreover, we can decompose unemployment into several components – seasonal, cyclical and structural. The aim of the paper is to decompose unemployment and we try to estimate the rate of structural unemployment. Quarterly data from the Eurostat database in the period between 2000 and 2012 were applied. In order to estimate the trend of...

  3. Structural Estimates of Equilibrium Unemployment in Six OECD Economies

    Albert van der Horst


    In Europe, neither unemployment rates nor institutions are uniform. In the EMU, countries have coordinated their monetary policy, and fiscal policy might follow. Does convergence in fiscal policy imply that unemployment rates will converge, too, or is diversified fiscal policy desirable? An answer to this question requires insight into the dependence on fiscal policy of the unemployment rate in equilibrium. This study estimates the equilibrium rate of unemployment and shows that it has been a...

  4. Structural unemployment in Europe: A bird's-eye view

    Paqué, Karl-Heinz


    This paper presents a synoptic interpretation of structural unemployment in Europe. The paper consists of three parts. Part 1 summarises some major stilysed facts of the record and the state of unemployment in Europe. In part 2, these facts are taken as the basis for a theoretical interpretation of the genesis and persistence of European unemployment. Part 3 contains policy conclusions. The main message of the paper is that the ultimate cause of European unemployment since the early 1980s is ...


    Edwards, Clark


    Inflation and unemployment plagued the U S economy during the decade of the seventies Some economic models suggest that inflation and unemployment are bi-polar events - they cannot occur at the same time This article reviews two models that have been in the economics literature since the thirties and that explain inflation and unemployment as complements, not substitutes One is the well-known IS/LM framework, the other is sometimes called the structural unemployment framework A third model wh...

  6. Unemployment and Welfare State: What do the Data Tell Us?



    The aim of this paper is to analyze the relationship between welfare expenditure by government and unemployment outcomes. Using a panel of 34 OECD countries from 1980 to 2010 and a two-way fixed effect model for panel data subject to endogeneity test and persistence test, the results of the paper suggest that total welfare expenditure as a percentage of GDP has a statistically significant positive impact on unemployment outcomes (total unemployment, long-term unemployment and youth unemployme...

  7. Why Has Unemployment Risen in the New South Africa

    Abhijit Banerjee; Sebastian Galiani; Jim Levinsohn; Zoë McLaren; Ingrid Woolard


    We document the rise in unemployment in South Africa since the transition in 1994. We describe the likely causes of this increase and analyze whether the increase in unemployment is due to structural changes in the economy (resulting in a new equilibrium unemployment rate) or to negative shocks (that temporarily have increased unemployment). We conclude the former are more important. Our analysis includes a multinomial logit approach to understanding transitions in individual-level changes in...

  8. 26 CFR 1.85-1 - Unemployment compensation.


    ... 26 Internal Revenue 2 2010-04-01 2010-04-01 false Unemployment compensation. 1.85-1 Section 1.85-1...) INCOME TAXES (CONTINUED) Items Specifically Included in Gross Income § 1.85-1 Unemployment compensation... unemployment compensation (as defined in paragraph (b)(1) of this section) paid in taxable years...

  9. 20 CFR 336.2 - Duration of normal unemployment benefits.


    ... 20 Employees' Benefits 1 2010-04-01 2010-04-01 false Duration of normal unemployment benefits. 336... UNEMPLOYMENT INSURANCE ACT DURATION OF NORMAL AND EXTENDED BENEFITS Normal Benefits § 336.2 Duration of normal unemployment benefits. (a) 130 compensable day limitation. A qualified employee who has satisfied the...

  10. 20 CFR 606.42 - High unemployment delay.


    ... 20 Employees' Benefits 3 2010-04-01 2010-04-01 false High unemployment delay. 606.42 Section 606... THE FEDERAL UNEMPLOYMENT TAX ACT; ADVANCES UNDER TITLE XII OF THE SOCIAL SECURITY ACT Relief from Interest Payment § 606.42 High unemployment delay. (a) Applicability. Paragraph (9) of section 1202 (b)...