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The Rise in Danish Unemployment: Reallocation or Mismatch?

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  • Karsten Albæk
  • Henrik Hansen

Abstract

The two main competing theories for the outward shift in the uv-curve are investigated: increased separations from employment at a given employment level (reallocation) and decreased levels of hires, given unemployment and vacancies (mismatch). Shifts in the unemployment-vacancy (uv)-curve and the hiring function are modelled by smooth transition functions, and the hypothesis of analogous shifts in the two curves is tested and accepted. This is interpreted as evidence in favour of the mismatch hypotheses. Copyright 2004 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics and Statistics.

Volume (Year): 66 (2004)
Issue (Month): 4 (09)
Pages: 515-536

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Handle: RePEc:bla:obuest:v:66:y:2004:i:4:p:515-536

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Cited by:
  1. Heidi Soininen, 2007. "Finnish Evidence of Changes in Labor Market Matching," Finnish Economic Papers, Finnish Economic Association, vol. 20(1), pages 57-71, Spring.
  2. Aki Kangasharju & Sanna-Mari Hynninen & Jaakko Pehkonen, 2006. "Regional Matching Frictions and Aggregate Unemployment," Discussion Papers 383, Government Institute for Economic Research Finland (VATT).

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