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The pace of structural change and labour market dynamics: simulations using an empirical flow model

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Author Info

  • Butter, F.A.G. den

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Dijk, M. van

Abstract

A sensitivity analysis using an empirical model of labour market dynamics shows that an increase in the pace of structural chance, which leads to an outward shift of the UV-curve, may have substantial effects on employment and unemployment especially when the initial pace of structural change is low. It suggests that not only the size of the shocks but also the initial conditions can be a major cause for the labour market turbulence in economies in transition. The model simulations also display large differences in the size of the impulse responses and of recognition lags depending on the specification af the flow model and on the characteristics of the matching process.

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File URL: ftp://zappa.ubvu.vu.nl/19950034.pdf
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Bibliographic Info

Paper provided by VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number 0034.

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Date of creation: 1995
Date of revision:
Handle: RePEc:dgr:vuarem:1995-34

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Web page: http://www.feweb.vu.nl

Related research

Keywords: Structural change; Job destruction; Job creation; UV-analysis; Impulse-response effects; Matching process;

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Cited by:
  1. Kock, Udo, 1998. "Constructing labour market flows for the Netherlands using macro data from social security provisions : 1970-1995," Serie Research Memoranda 0040, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.

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