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The natural rate of unemployment and the unemployment gender gap

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  • Maurizio Baussola

    ()
    (DISCE, Università Cattolica)

  • Chiara Mussida

    ()
    (DISCE, Università Cattolica)

Abstract

Recent labour market developments include an increase in labour market mismatches, in that high unemployment rates coexist with significant levels of vacancies. This pattern is particularly evident in the US economy, but is also significant within the European Union; it implies that the natural rate of unemployment may rise significantly, thus suggesting that even if policies aimed at reducing it are implemented, the unemployment rate may remain steady if not increase. An important factor possibly influencing such an increase is related to the gender differential in employment opportunities. This is particularly relevant wherever such a differential represents a structural characteristic of the labour market, as in the case of Italy. The present work focuses on this issue and presents a methodology to decompose the natural rate of unemployment by gender, thus defining it in terms of equilibrium labour market flows between the aggregate states of the labour market (Employment, Unemployment, Non Labour Force). In addition, we propose estimates of the determinants of the unemployment gender gap, in order to pinpoint the relative roles of individual characteristics and structural factors in determining this difference.

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File URL: http://www.unicatt.it/dipartimenti/DISES/allegati/dises1180.pdf
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Bibliographic Info

Paper provided by Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) in its series DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali with number dises1180.

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Length: 27 pages
Date of creation: Dec 2011
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Handle: RePEc:ctc:serie2:dises1180

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Web page: http://www.unicatt.it/Dipartimenti/DISES
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Keywords: unemployment gender gap; differentials; multinomial models; transition probability matrix.;

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  1. Ghazala Azmat & Maia Güell & Alan Manning, 2004. "Gender Gaps in Unemployment Rates in OECD Countries," CEP Discussion Papers dp0607, Centre for Economic Performance, LSE.
  2. Gianna Barbieri & Paolo Sestito, 2008. "Temporary Workers in Italy: Who Are They and Where They End Up," LABOUR, CEIS, vol. 22(1), pages 127-166, 03.
  3. Martin Schindler, 2009. "The Italian Labor Market," IMF Working Papers 09/47, International Monetary Fund.
  4. Enrico Fabrizi, 2009. "The Determinants of Labour Market Transitions," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 68(2), pages 233-265, July.
  5. Fabio Berton & Francesco Devicienti & Lia Pacelli, 2007. "Temporary jobs: Port of entry, Trap, or just Unobserved Heterogeneity?," LABORatorio R. Revelli Working Papers Series 68, LABORatorio R. Revelli, Centre for Employment Studies.
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