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An Empirical Model of Sectoral Movements by Unemployed Workers

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  • Thomas, Jonathan M
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    Abstract

    Using Canadian data, the author investigates the relationships among sectoral mobility, unemployment spells, and total unemployment. Recent North American evidence suggests that incidence shifts toward high wage-high tenure workers may increase equilibrium unemployment through decreasing sectoral mobility and increasing spells. Using a multiple spell transition model, the author finds that, while shifts toward such workers may have these effects, composition changes that lead to higher mobility can also increase unemployment. A further investigation into the relative roles of mobility and spell lengths in driving total unemployment indicates that the influence of the former is comparatively small. Copyright 1996 by University of Chicago Press.

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    Bibliographic Info

    Article provided by University of Chicago Press in its journal Journal of Labor Economics.

    Volume (Year): 14 (1996)
    Issue (Month): 1 (January)
    Pages: 126-53

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    Handle: RePEc:ucp:jlabec:v:14:y:1996:i:1:p:126-53

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    Web page: http://www.journals.uchicago.edu/JOLE/

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    Cited by:
    1. Cunningham, Wendy V., 2001. "Sectoral allocation by gender of Latin American workers over the liberalization period of the 1990s," Policy Research Working Paper Series 2742, The World Bank.
    2. Giovanni Gallipoli & Gianluigi Pelloni, 2008. "Aggregate Shocks vs Reallocation Shocks: an Appraisal of the Applied Literature," Working Paper Series 27-08, The Rimini Centre for Economic Analysis, revised Jan 2008.
    3. Lars Vilhuber, 1997. "Sector-Specific On-the-Job Training: Evidence from U.S. Data," CIRANO Working Papers 97s-42, CIRANO.
    4. Pavlopoulos, Dimitris & Fouarge, Didier, 2008. "Escaping low pay: do male labour market entrants stand a chance?," IRISS Working Paper Series 2008-12, IRISS at CEPS/INSTEAD.
    5. Lars Vilhuber, 1999. "Sector-Specific Training and Mobility in Germany," CIRANO Working Papers 99s-03, CIRANO.
    6. John Hassler & José V. Rodríguez Mora & Kjetil Storesletten & Fabrizio Zilibotti, 1998. "Equilibrium unemployment insurance," Economics Working Papers 605, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 1999.
    7. Phimister, Euan & Theodossiou, Ioannis & Upward, Richard, 2004. "Is It Easier To Escape From Low Pay In Urban Areas? Evidence From The Uk," Discussion Papers 31790, University of Aberdeen Business School, Centre for European Labour Market Research (CELMR).
    8. Giovanni Gallipoli & Gianluigi Pelloni, 2013. "Macroeconomic Effects of Job Reallocations: A Survey," Working Paper Series 37_13, The Rimini Centre for Economic Analysis.
    9. Prakash Loungani & Bharat Trehan, 1997. "Explaining unemployment: sectoral vs aggregate shocks," Economic Review, Federal Reserve Bank of San Francisco, pages 3-15.
    10. Zinzhu Chen & Prakash Kannan & Prakash Loungani & Bharat Trehan, 2011. "New evidence on cyclical and structural sources of unemployment," Working Paper Series 2011-17, Federal Reserve Bank of San Francisco.
    11. VILHUBERT, Lars, 1999. "Sector-Specific on-the-Job Training: Evidence from U.S. Data," Cahiers de recherche 9906, Universite de Montreal, Departement de sciences economiques.

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