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On gross worker flows in the United Kingdom: evidence from the Labour Force Survey

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  • Brian Bell
  • James Smith

Abstract

Empirical studies of worker flows in the United States and Europe have found that these flows are large when compared with the change in the stocks of employment and non-employment, and have a distinct cyclical pattern. In the United Kingdom, studies of this kind have been hampered by limitations in the available data. In this paper use is made of newly released longitudinal data from the Labour Force Survey. It is shown that, on average, since 1993 7.3% of those in the working-age population have changed labour market state in a given three-month period. This compares with a consistently calculated annual figure of 12.5%. In addition, an array of evidence is presented to show that UK gross flows appear to follow a cyclical pattern similar to those found in other countries. Evidence is also presented on the potential problems that previous research may suffer from with their use of recall data to determine prior labour market status. While stocks are similar using recall or recorded labour market state, flows inferred from recall data are severely biased by recall error.

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Bibliographic Info

Paper provided by Bank of England in its series Bank of England working papers with number 160.

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Date of creation: Jul 2002
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Handle: RePEc:boe:boeewp:160

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  1. Pedro Portugal & Olivier Blanchard, 2001. "What Hides Behind an Unemployment Rate: Comparing Portuguese and U.S. Labor Markets," American Economic Review, American Economic Association, vol. 91(1), pages 187-207, March.
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  5. Burgess, Simon & Turon, Hélène, 2000. "Unemployment Dynamics, Duration and Equilibrium: Evidence from Britain," CEPR Discussion Papers 2490, C.E.P.R. Discussion Papers.
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  7. Burda, Michael & Wyplosz, Charles, 1994. "Gross worker and job flows in Europe," European Economic Review, Elsevier, vol. 38(6), pages 1287-1315, June.
  8. Blanchard, Olivier Jean & Diamond, Peter, 1992. "The Flow Approach to Labor Markets," American Economic Review, American Economic Association, vol. 82(2), pages 354-59, May.
  9. Schmidt, Christoph M., 1999. "Persistence and the German Unemployment Problem: Empirical Evidences on German Labor Market Flows," IZA Discussion Papers 31, Institute for the Study of Labor (IZA).
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Cited by:
  1. Katarzyna Budnik, 2007. "Migration Flows and Labour Market in Poland," National Bank of Poland Working Papers 44, National Bank of Poland, Economic Institute.
  2. Francesco Zanetti, 2006. "Labor Market Institutions and Aggregate Fluctuations in a Search and Matching Model," Computing in Economics and Finance 2006 445, Society for Computational Economics.
  3. Robert Dixon & John Freebairn & G. C. Lim, 2004. "A Framework For Understanding Changes In The Unemployment Rate In A Flows Context: An Examination Net Flows In The Australian Labour Market," Department of Economics - Working Papers Series 910, The University of Melbourne.
  4. Makoto Kakinaka & Hiroaki Miyamoto, 2011. "Unemployment and Labor Force Participation in Japan," Working Papers EMS_2011_15, Research Institute, International University of Japan.
  5. Brian Bell & James Smith, 2004. "Health, disability insurance and labour force participation," Bank of England working papers 218, Bank of England.
  6. Ching-Yang Lin & Hiroaki Miyamoto, 2010. "Gross Worker Flows and Unemployment Dynamics in Japan," Working Papers EMS_2010_07, Research Institute, International University of Japan.
  7. Robert Dixon, 2007. "Regional Differences in the Severity of Recessions in the UK," Department of Economics - Working Papers Series 1009, The University of Melbourne.
  8. Gomes, Pedro, 2012. "Labour market flows: Facts from the United Kingdom," Labour Economics, Elsevier, vol. 19(2), pages 165-175.
  9. Mark Schweitzer & David Tinsley, 2004. "The UK labour force participation rate: business cycle and trend influences," Bank of England working papers 228, Bank of England.

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