“Job finding and participation rates in the OECD: identification with job tenure data” was presented by István KÓNYA at the EEA-ESEM Congress (33rd Annual Congress of the European Economic Association and 71st European Meeting of The Econometric Society).
Abstract
It is common practice in the literature to compute labor flows from data on stocks.
To use these flows in standard search models, it is assumed that the economically relevant
movements occur between employment and unemployment. If there are significant flows
between labor force participation and inactivity, ignoring the participation decision can lead
to biased results. This paper shows that while with three states it is impossible to identify
all the flows from publicly available data on stocks, partial identification is possible with
the help of data on unemployment duration and job tenure. A new method is described,
which allows the computation of the transition probabilities that are most relevant from a
macroeconomic perspective. The method is easy to use, and the paper describes the detailed
steps for its implementation to potential users.
Challenging Science and Innovation Policy Utrecht, 1-3 June 2022, hosted by Copernicus Institute of Sustainable Development, Utrecht University The “European Forum for Studies ... Read More »
Published in ‘Does EU Membership Facilitate Convergence? The Expierience of the EU’s Eastern Enlargement – Volume II’ Edited by Landesmann, Michael, Székely, Istvan P. ... Read More »
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