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Worker flows in Germany: Inspecting the time aggregation bias

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  • Nordmeier, Daniela

    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

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    Abstract

    "This paper analyzes the importance of time aggregation in the measurement of worker flows by exploiting daily information from German administrative data. Time aggregation caused by comparing monthly labor market states leads to an underestimation of total worker flows by around 10%. Contrary to the claim of Shimer (2005, 2012), the time aggregation bias in the separation rate is relatively unaffected by business cycle fluctuations, whereas the time aggregation bias in the job finding rate is procyclical. Nevertheless, monthly time aggregation does not have notable effects on the relative contributions to steady-state unemployment dynamics. The reconsideration of German worker flows reveals that both the job finding rate and the separation rate play an important role for German unemployment dynamics, but the job finding rate dominates in the long run." (Author's abstract, IAB-Doku) ((en))

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    Bibliographic Info

    Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 201212.

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    Length: 36 pages
    Date of creation: 02 May 2012
    Date of revision:
    Handle: RePEc:iab:iabdpa:201212

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    Keywords: Arbeitsplatzwechsel; Arbeitsuche; friktionelle Arbeitslosigkeit; Arbeitsmarkt - Zu- und Abgänge; zwischenbetriebliche Mobilität; Arbeitskräftemobilität; Arbeitsstatistik; Arbeitsmarktindikatoren; institutionelle Faktoren; Matching; beruflicher Status; Statusmobilität; Arbeitsmarktforschung - Methode;

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    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Smith, Jennifer, 2010. "The Ins and Outs of UK Unemployment," The Warwick Economics Research Paper Series (TWERPS) 944, University of Warwick, Department of Economics.
    2. Michael Elsby & Bart Hobijn & Aysegul Sahin, 2008. "Unemployment Dynamics in the OECD," NBER Working Papers 14617, National Bureau of Economic Research, Inc.
    3. Burda, Michael & Wyplosz, Charles, 1994. "Gross worker and job flows in Europe," European Economic Review, Elsevier, Elsevier, vol. 38(6), pages 1287-1315, June.
    4. Jacobi, Lena & Kluve, Jochen, 2007. "Before and after the Hartz reforms: The performance of active labour market policy in Germany," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(1), pages 45-64.
    5. Jochen Kluve & Sandra Schaffner & Christoph M. Schmidt, 2009. "Labor Force Status Dynamics in the German Labor Market - Individual Heterogeneity and Cyclical Sensitivity," Ruhr Economic Papers, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen 0139, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    6. Shigeru Fujita & Garey Ramey, 2007. "The cyclicality of separation and job finding rates," Working Papers 07-19, Federal Reserve Bank of Philadelphia.
    7. Robert Shimer, 2012. "Reassessing the Ins and Outs of Unemployment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 15(2), pages 127-148, April.
    8. Bernd Fitzenberger & Ralf A. Wilke, 2010. "Unemployment Durations in West Germany Before and After the Reform of the Unemployment Compensation System during the 1980s," German Economic Review, Verein für Socialpolitik, Verein für Socialpolitik, vol. 11, pages 336-366, 08.
    9. Elsby, Michael W.L. & Smith, Jennifer C. & Wadsworth, Jonathan, 2011. "The role of worker flows in the dynamics and distribution of UK unemployment," The Warwick Economics Research Paper Series (TWERPS) 962, University of Warwick, Department of Economics.
    10. Ramey, Garey & Shigeru Fujita, 2006. "The Cyclicality of Job Loss and Hiring," University of California at San Diego, Economics Working Paper Series, Department of Economics, UC San Diego qt4nz8p839, Department of Economics, UC San Diego.
    11. repec:iab:iabzaf:v:40:i:1:p:45-64 is not listed on IDEAS
    12. Barbara Petrongolo & Christopher A. Pissarides, 2008. "The Ins and Outs of European Unemployment," American Economic Review, American Economic Association, American Economic Association, vol. 98(2), pages 256-62, May.
    13. Philip, Jung & Moritz, Kuhn, 2011. "The Era of the U.S.-Europe Labor Market Divide: What can we learn?," MPRA Paper 32322, University Library of Munich, Germany.
    14. Gary Solon & Ryan Michaels & Michael W. L. Elsby, 2009. "The Ins and Outs of Cyclical Unemployment," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 84-110, January.
    15. Gartner, Hermann & Merkl, Christian & Rothe, Thomas, 2012. "Sclerosis and large volatilities: Two sides of the same coin," Economics Letters, Elsevier, Elsevier, vol. 117(1), pages 106-109.
    16. Gabriele Cardullo, 2010. "Matching Models Under Scrutiny: An Appraisal Of The Shimer Puzzle," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 24(4), pages 622-656, 09.
    17. Gomes, Pedro, 2012. "Labour market flows: Facts from the United Kingdom," Labour Economics, Elsevier, Elsevier, vol. 19(2), pages 165-175.
    18. Robert Shimer, 2005. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies," American Economic Review, American Economic Association, American Economic Association, vol. 95(1), pages 25-49, March.
    19. Yashiv, Eran, 2006. "U.S. Labor Market Dynamics Revisited," IZA Discussion Papers 2455, Institute for the Study of Labor (IZA).
    20. Bachmann, Ronald & Schaffner, Sandra, 2009. "Biases in the measurement of labour market dynamics," Technical Reports 2009,12, Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen.
    21. Ronald Bachmann, 2005. "Labour Market Dynamics in Germany: Hirings, Separations, and Job-to-Job Transitions over the Business Cycle," SFB 649 Discussion Papers SFB649DP2005-045, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
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    Cited by:
    1. Gartner, Hermann & Merkl, Christian & Rothe, Thomas, 2012. "Sclerosis and large volatilities: Two sides of the same coin," Economics Letters, Elsevier, Elsevier, vol. 117(1), pages 106-109.

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