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Mismatch Unemployment

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  • Sahin, Aysegul
  • Song, Joseph
  • Topa, Giorgio
  • Violante, Giovanni L

Abstract

We develop a framework where mismatch between vacancies and job seekers across sectors translates into higher unemployment by lowering the aggregate job-finding rate. We use this framework to measure the contribution of mismatch to the recent rise in U.S. unemployment by exploiting two sources of cross-sectional data on vacancies, JOLTS and HWOL, a new database covering the universe of onlineU.S. job advertisements. Mismatch across industries and occupations explains at most 1/3 of the total observed increase in the unemployment rate, whereas geographical mismatch plays no apparent role. The share of the rise in unemployment explained by occupational mismatch is increasing in the education level.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 9093.

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Date of creation: Aug 2012
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Handle: RePEc:cpr:ceprdp:9093

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Keywords: great recession; mismatch; unemployment; vacancies;

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Cited by:
  1. Alfred Garloff & Rüdiger Wapler, 2013. "Are the Number of Skilled Workers Running Out in Germany? The (Non)-Consequences of Demographic Change," ERSA conference papers ersa13p854, European Regional Science Association.
  2. Daniel Borowczyk-Martins & Gregory Jolivet & Fabien Postel-Vinay, 2013. "Accounting For Endogeneity in Matching Function Estimation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(3), pages 440-451, July.
  3. John C. Williams, 2013. "The economy and Fed policy: follow the demand," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue feb25.
  4. repec:fip:fedfsp:y:2013:i:feb21 is not listed on IDEAS
  5. John C. Williams, 2013. "The economy and monetary policy: follow the demand," Speech 116, Federal Reserve Bank of San Francisco.

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