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The Cyclicality of the Separation and Job Finding Rates in France

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Author Info

  • Hairault, Jean-Olivier

    ()
    (University of Paris 1 Panthéon-Sorbonne)

  • Le Barbanchon, Thomas

    ()
    (CREST)

  • Sopraseuth, Thepthida

    ()
    (University of Cergy-Pontoise)

Abstract

In this paper, we aim to shed light on the relative contribution of the separation and job finding rates to French unemployment at business cycle frequencies by using administrative data on registered unemployment and labor force surveys. We first investigate the fluctuations in steady state unemployment, and then in current unemployment in order to take into account the unemployment deviations from equilibrium. Our results show the dominant role of the job finding rate in accounting for French unemployment fluctuations. The contribution of the job finding rate amounts to about two-thirds of the unemployment dynamics. With the two data sets, we find that both rates contributed to unemployment fluctuations during the nineties, while the job finding rate has been more significant in the last decade. In particular, the last business cycle episodes, including the last recession, exacerbate the role of the job finding rate.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6906.

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Length: 30 pages
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6906

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Keywords: unemployment variability; job separation; job finding; worker flows;

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References

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  1. Barbara Petrongolo & Christopher Pissarides, 2008. "The ins and outs of European unemployment," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 3658, London School of Economics and Political Science, LSE Library.
  2. Michael Elsby & Bart Hobijn & Aysegül Sahin, 2009. "Unemployment dynamics in the OECD," Working Paper Series, Federal Reserve Bank of San Francisco 2009-04, Federal Reserve Bank of San Francisco.
  3. Robert Shimer, 2007. "Reassessing the Ins and Outs of Unemployment," NBER Working Papers 13421, National Bureau of Economic Research, Inc.
  4. Shigeru Fujita & Garey Ramey, 2007. "The cyclicality of separation and job finding rates," Working Papers 07-19, Federal Reserve Bank of Philadelphia.
  5. Michael W. Elsby & Ryan Michaels & Gary Solon, 2007. "The Ins and Outs of Cyclical Unemployment," NBER Working Papers 12853, National Bureau of Economic Research, Inc.
  6. Smith, Jennifer, 2010. "The Ins and Outs of UK Unemployment," The Warwick Economics Research Paper Series (TWERPS) 944, University of Warwick, Department of Economics.
  7. Thierry Magnac & Michael Visser, 1999. "Transition Models With Measurement Errors," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 466-474, August.
  8. Tomi Kyyrä & Ralf A. Wilke, 2011. "On the reliability of retrospective unemployment information in European household panel data," Working Papers 21, Government Institute for Economic Research Finland (VATT).
  9. Poterba, James M & Summers, Lawrence H, 1986. "Reporting Errors and Labor Market Dynamics," Econometrica, Econometric Society, Econometric Society, vol. 54(6), pages 1319-38, November.
  10. Pedro Portugal & Olivier Blanchard, 2001. "What Hides Behind an Unemployment Rate: Comparing Portuguese and U.S. Labor Markets," American Economic Review, American Economic Association, American Economic Association, vol. 91(1), pages 187-207, March.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Why is it so difficult to find a job in France?
    by Economic Logician in Economic Logic on 2013-04-12 13:26:00
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Cited by:
  1. Matthias S. Hertweck & Oliver Sigrist, 2013. "The Aggregate Effects of the Hartz Reforms in Germany," Working papers, Faculty of Business and Economics - University of Basel 2013/01, Faculty of Business and Economics - University of Basel.

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