The incidence rate represents a composite indicator that takes account of both the number of unemployed people and the average duration of employment. The analysis of this rate allows to portrait a more complete profile of those individuals who are more likely to either become unemployed or stay in such a situation. We find significant differences in the analysis of the unemployment rate and the incidence rate in Colombia, which suggests the importance of addressing certain elements underlying unemployment duration when appraising unemployment typology and policies aimed to overcome it.
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Article provided by Universidad de Antioquia, Departamento de Economía in its journal LECTURAS DE ECONOMÍA.