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Deconstructing Structural Unemployment

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  • John Schmitt
  • Kris Warner

Abstract

Some economic observers argue “structural unemployment” has increased in the wake of the Great Recession, but in this paper we find little support for either of two arguments that suggest that structural unemployment has been on the rise. The first argument focuses on the large increase in unemployment among construction workers. The second argument is that falling house prices have reduced the mobility of unemployed workers — creating a “housing lock” in which unemployed workers, who would otherwise relocate to regions with jobs, are stuck in high unemployment areas.

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File URL: http://www.cepr.net/documents/publications/dws-2011-03.pdf
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Bibliographic Info

Paper provided by Center for Economic and Policy Research (CEPR) in its series CEPR Reports and Issue Briefs with number 2011-06.

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Length: 15 pages
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:epo:papers:2011-06

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Related research

Keywords: unemployment; structural unemployment; stimulus; Great Recession;

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References

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  1. Dean Baker, 2009. "The Housing Crash Recession and the Case for a Third Stimulus," CEPR Reports and Issue Briefs 2009-10, Center for Economic and Policy Research (CEPR).
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Cited by:
  1. Alicia Sasser Modestino & Julia Dennett, 2012. "Are American homeowners locked into their houses?: the impact of housing market conditions on state-to-state migration," Working Papers 12-1, Federal Reserve Bank of Boston.
  2. Jesse Rothstein, 2012. "The Labor Market Four Years into the Crisis: Assessing Structural Explanations," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 65(3), pages 437-500, July.
  3. Modestino, Alicia Sasser & Dennett, Julia, 2013. "Are American homeowners locked into their houses? The impact of housing market conditions on state-to-state migration," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 322-337.
  4. Christopher F. Goetz, 2013. "Falling House Prices And Labor Mobility: Evidence From Matched Employer-Employee Data," Working Papers 13-43, Center for Economic Studies, U.S. Census Bureau.
  5. Valletta, Robert G., 2013. "House lock and structural unemployment," Labour Economics, Elsevier, vol. 25(C), pages 86-97.
  6. Robert G. Valletta, 2012. "House lock and structural unemployment," Working Paper Series 2012-25, Federal Reserve Bank of San Francisco.
  7. John Schmitt, 2011. "Labor Market Policy in the Great Recession: Some Lessons from Denmark and Germany," CEPR Reports and Issue Briefs 2011-12, Center for Economic and Policy Research (CEPR).
  8. Valletta, Robert G., 2012. "House Lock and Structural Unemployment," IZA Discussion Papers 7002, Institute for the Study of Labor (IZA).

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