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How Many Labour Force States? An Analysis Based on the British Household Panel Survey (BHPS)

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  • Elisabetta Marzano

Abstract

The motivation of this paper is to investigate the characteristics of the British labour force, using data from the British Household Panel Survey (BHPS). The goal is to examine whether there are statistically significant differences between the unemployed and non-participants, as well as inside each of the two groups, considering their transitions in the job market. Using logistic regression for a pooled cross-section time-series sample of employed as well as non-employed persons, three different Out of Work subgroups are identified: Seeking Out of Work, Attached Out of Work, and Voluntary Out of Work. The first group can be broadly assimilated to the official definition of unemployment, International Labour Organization unemployment, whereas all the others are usually classified as economically inactive. Nonetheless, the last two groups are characterized by significantly different transition rates, showing a behaviourally distinct attitude in their labour market dynamics. This result points out that the aggregate non-employment has several dimensions, which are not caught by the distinction between unemployment and economic inactivity, and should be accounted for by policy makers and researchers. Copyright 2006 The Author; Journal compilation 2006 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd..

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Bibliographic Info

Article provided by CEIS in its journal LABOUR.

Volume (Year): 20 (2006)
Issue (Month): 2 (06)
Pages: 237-254

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Handle: RePEc:bla:labour:v:20:y:2006:i:2:p:237-254

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References

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  1. Sergi Jiménez-Martín & Franco Peracchi, 2002. "Sample attrition and labor force dynamics: Evidence from the Spanish labor force survey," Spanish Economic Review, Springer, vol. 4(2), pages 79-102.
  2. repec:ese:iserwp:2003-25 is not listed on IDEAS
  3. Nickell, S.J. & Ours, J.C. van, 1999. "The Netherlands and the United Kingdom: A European Unemployment Miracle?," Discussion Paper 1999-119, Tilburg University, Center for Economic Research.
  4. Garrido, Luis & Toharia, Luis, 2004. "What does it take to be (counted as) unemployed? The case of Spain," Labour Economics, Elsevier, vol. 11(4), pages 507-523, August.
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Cited by:
  1. García-Gómez, Pilar & Jones, Andrew M. & Rice, Nigel, 2010. "Health effects on labour market exits and entries," Labour Economics, Elsevier, vol. 17(1), pages 62-76, January.
  2. 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.
  3. 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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