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The Labour Force Dynamics Of The Marginally Attached

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  • MATTHEW GRAY
  • ALEXANDRA HEATH
  • BOYD HUNTER

Abstract

One of the most important measures of the state of the labour market is the unemployment rate. However, the standard definition of unemployment ignores an important group of people who are not employed but who want to work - the marginally attached workforce. The marginally attached are defined as those who are not employed, want to work but are not actively seeking work and therefore not classified as unemployed. The paper uses longitudinal data from the Survey of Employment and Unemployment Patterns (SEUP) to test whether the marginally attached are behaviourally distinct from the unemployed or those who are not attached to the labour force. We find that the labour force transitions of the marginally attached, on the whole, are between those of the unemployed and the unattached. Another finding is that the length of time over which the labour market dynamics are considered is crucial to our understanding of the labour market dynamics of the marginally attached. An implication of the findings of this paper is that a range of measures of potential labour supply should be considered, and that the measure used should depend on the specific question being asked. Copyright Blackwell Publishing Ltd/ University of Adelaide and Flinders University 2005..

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Australian Economic Papers.

Volume (Year): 44 (2005)
Issue (Month): 1 (03)
Pages: 1-14

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Handle: RePEc:bla:ausecp:v:44:y:2005:i:1:p:1-14

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0004-900X

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Cited by:
  1. Scott Baum & William Mitchell, 2010. "Labour Underutilisation and Gender: Unemployment Versus Hidden-Unemployment," Population Research and Policy Review, Springer, vol. 29(2), pages 233-248, April.
  2. Gürbüz, Ayça Akarcay & Polat, Sezgin & Ulus, Mustafa, 2013. "In Limbo: Exploring transition to discouragement," GIAM Working Papers 13-4, Galatasaray University Economic Research Center.
  3. Robert Breunig & Joseph Mercante, 2010. "The Accuracy of Predicted Wages of the Non-Employed and Implications for Policy Simulations from Structural Labour Supply Models," The Economic Record, The Economic Society of Australia, vol. 86(272), pages 49-70, 03.
  4. Krusell, Per & Mukoyama, Toshihiko & Rogerson, Richard & Sahin, Aysegul, 2009. "A Three State Model of Worker Flows in General Equilibrium," CEPR Discussion Papers 7425, C.E.P.R. Discussion Papers.
  5. Ipek Ilkkaracan & Haluk Levent & Sezgin Polat, 2013. "Exploring different measures of wage flexibility in a developing economy context: the case for Turkey," International Review of Applied Economics, Taylor & Francis Journals, vol. 27(3), pages 297-315, May.
  6. Toshihiko Mukoyama & Richard Rogerson & Aysegul Sahin & Per Krusell, 2009. "Labor supply in a frictional labor market," 2009 Meeting Papers 54, Society for Economic Dynamics.

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