Accounting for unemployment in the Great Recession : nonparticipation matters
AbstractWe conduct an accounting exercise of the role of worker flows between unemployment, employment, and labor force nonparticipation in the dynamics of the aggregate unemployment rate across four recent recessions: 1982-1983, 1990-1991, 2001, and 2007-2009 (the "Great Recession"). We show that, whereas during earlier recessions it was sufficient to examine the flows between employment and unemployment to account for the dynamics of the unemployment rate, this was not true in the Great Recession. The increased importance of the flows between nonparticipation and unemployment is documented across all age and gender groups.
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Bibliographic InfoPaper provided by Federal Reserve Bank of Richmond in its series Working Paper with number 12-04.
Date of creation: 2012
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-14 (All new papers)
- NEP-LAB-2012-07-14 (Labour Economics)
- NEP-MAC-2012-07-14 (Macroeconomics)
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