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Cyclical Flows in Australian Labour Markets

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  • NATALIA PONOMAREVA
  • JEFFREY SHEEN

Abstract

Using a four-state model, we show that Australian labour markets exhibited more mobility after 1980, but most gains occurred before 1993. We find large and significant procyclical effects in the transition probabilities from unemployment to jobs, which contribute significantly to the variations of unemployment. Transitions from jobs to unemployment are countercyclical, but the effects are small and in most cases insignificant. Although job-losing and job-finding both matter for the evolution of unemployment over the whole business cycle, job-finding has become more important in recent years. During recessions, job-finding is a bigger issue. Each transition probability explains only a small proportion of participation rates. Copyright © 2010 The Economic Society of Australia.

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Bibliographic Info

Article provided by The Economic Society of Australia in its journal Economic Record.

Volume (Year): 86 (2010)
Issue (Month): s1 (09)
Pages: 35-48

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Handle: RePEc:bla:ecorec:v:86:y:2010:i:s1:p:35-48

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Cited by:
  1. Richard Rogerson & Robert Shimer, 2010. "Search in Macroeconomic Models of the Labor Market," NBER Working Papers 15901, National Bureau of Economic Research, Inc.
  2. Bruce Chapman, 2011. "How Many Jobs is 23,510, Really?," Crawford School Research Papers 1104, Crawford School of Public Policy, The Australian National University.
  3. Bruce Chapman & Kiatanantha Lounkaew, 2011. "How Many Jobs is 23,510, Really? Recasting the Mining Job Loss Debate," CCEP Working Papers 1106, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
  4. Wesselbaum, Dennis, 2013. "Labour Market Dynamics in Australia," MPRA Paper 47771, University Library of Munich, Germany.
  5. Ponomareva, Natalia & Sheen, Jeffrey, 2013. "Australian labor market dynamics across the ages," Economic Modelling, Elsevier, vol. 35(C), pages 453-463.

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