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Integrating Hidden Unemployment in the Measurement of Unemployment in Selected OECD Countries

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  • Agbola, F. W.

Abstract

This paper utilises OECD bi-annual data from the Economic Outlook database to estimate the extent of hidden unemployment in selected OECD countries. The labour force variations attributable to an economy operating at below full employment level are computed by using a regression modelling framework to generate estimates of the cyclical variations in labour force participation rates. The results show that hidden unemployment is a major problem in the countries studied, and adds to the waste of labour resources that accompany persistent output gaps in OECD countries.

Suggested Citation

  • Agbola, F. W., 2005. "Integrating Hidden Unemployment in the Measurement of Unemployment in Selected OECD Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 5(2).
    • Handle: RePEc:eaa:aeinde:v:5:y:2005:i:2_5
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    References listed on IDEAS

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    1. Wachter, Michael L, 1970. "Cyclical Variation in the Interindustry Wage Structure," American Economic Review, American Economic Association, vol. 60(1), pages 75-84, March.
    2. Ajit K. GHOSE, 2000. "Trade liberalization, employment and global inequality," International Labour Review, International Labour Organization, vol. 139(3), pages 281-305, September.
    3. Arthur M. Okun, 1973. "Upward Mobility in a High-Pressure Economy," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 4(1), pages 207-262.
    4. Wayne Vroman, 1977. "Worker Upgrading and the Business Cycle," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 8(1), pages 229-252.
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    Citations

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    Cited by:

    1. De Vita, Glauco & Livanos, Ilias & Salotti, Simone, 2014. "Involuntary non-standard employment: evidence from Italian regions," MPRA Paper 58117, University Library of Munich, Germany.
    2. Johann Fuchs & Enzo Weber, 2013. "A new look at the discouragement and the added worker hypotheses: applying a trend--cycle decomposition to unemployment," Applied Economics Letters, Taylor & Francis Journals, vol. 20(15), pages 1374-1378, October.
    3. Fuchs, Johann & Söhnlein, Doris & Weber, Brigitte & Weber, Enzo, 2017. "Forecasting labour supply and population: an integrated stochastic model," IAB-Discussion Paper 201701, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Johann Fuchs, 2014. "Der Einfluss von Hartz IV auf die westdeutsche Stille Reserve – Ergebnisse auf Basis unterschiedlicher methodischer Ansätze," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 8(1), pages 33-48, June.
    5. Christl, Michael & Kucsera, Dénes, 2013. "Österreich, das Land der versteckten Arbeitslosigkeit," EconStor Preprints 110462, ZBW - Leibniz Information Centre for Economics.
    6. Fuchs, Johann & Weber, Brigitte, 2021. "Neue Schätzungen für die Stille Reserve - erstmalig Anwendung des IAB-Konzepts auf Gesamtdeutschland," IAB-Forschungsbericht 202106, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Jajati Keshari Parida & Shiba Shankar Pattayat & Sher Verick, 2023. "Why is the size of discouraged labour force increasing in India?," Economic Change and Restructuring, Springer, vol. 56(5), pages 3601-3630, October.
    8. Johann Fuchs & Doris Söhnlein & Brigitte Weber & Enzo Weber, 2018. "Stochastic Forecasting of Labor Supply and Population: An Integrated Model," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 37(1), pages 33-58, February.
    9. Johann Fuchs & Enzo Weber, 2017. "Long-term unemployment and labour force participation: a decomposition of unemployment to test for the discouragement and added worker hypotheses," Applied Economics, Taylor & Francis Journals, vol. 49(60), pages 5971-5982, December.
    10. Martina Rengers & Johann Fuchs, 2022. "Stille Reserve in Deutschland: Gemeinsamkeiten und Unterschiede zweier Konzepte [Hidden labour force in Germany: similarities and differences between two concepts]," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 16(3), pages 189-230, December.
    11. Ozerkek, Y., 2013. "Unemployment And Labor Force Participation: A Panel Cointegration Analysis For European Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(1), pages 67-76.

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    More about this item

    Keywords

    Hidden unemployment; unemployment; OECD.;
    All these keywords.

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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