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A babel of web-searches: Googling unemployment during the pandemic

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  • Caperna, Giulio
  • Colagrossi, Marco
  • Geraci, Andrea
  • Mazzarella, Gianluca

Abstract

Researchers are increasingly exploiting web-searches to study phenomena for which timely and high-frequency data are not readily available. We propose a data-driven procedure which, exploiting machine learning techniques, solves the issue of identifying the list of queries linked to the phenomenon of interest, even in a cross-country setting. Queries are then aggregated in an indicator which can be used for causal inference. We apply this procedure to construct a search-based unemployment index and study the effect of lock-downs during the first wave of the covid-19 pandemic. In a Difference-in-Differences analysis, we show that the indicator rose significantly and persistently in the aftermath of lock-downs. This is not the case when using unprocessed (raw) web search data, which might return a partial figure of the labour market dynamics following lock-downs.

Suggested Citation

  • Caperna, Giulio & Colagrossi, Marco & Geraci, Andrea & Mazzarella, Gianluca, 2022. "A babel of web-searches: Googling unemployment during the pandemic," Labour Economics, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:labeco:v:74:y:2022:i:c:s0927537121001329
    DOI: 10.1016/j.labeco.2021.102097
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    More about this item

    Keywords

    Unemployment; Nowcast; Random forest; Covid-19; Google trends; Difference-in-Differences;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access

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