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The Rise in Danish Unemployment: Reallocation or Mismatch? Author info | Abstract | Publisher info | Download info | Related research | Statistics Karsten Albæk (Institute of Economics, University of Copenhagen)
Henrik Hansen (The Royal Veterinary and Agricultural University, Copenhagen)
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Two key relations in theoretical work on labor market flows are analyzed; the hiring function and the uv-curve. The relations are identified in a cointegrated VAR-model framework. The system comprising unemployment, vacancies and hirings is driven by a stochastic trend in the vacancies, corresponding to the status of vacancies as the driving force in models of labor market flows. The drift in the relations is modeled by smooth transition functions and is identified as increased mismatch problems in the Danish labor market as opposed to increased structural change.
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Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number
99-15.
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Length: 21 pages
Date of creation: Jul 1999Date of revision:
Handle: RePEc:kud:kuiedp:9915Contact details of provider: Postal: Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark Phone: (+45) 35 32 26 26 Fax: +45 35 32 30 00 Web page: http://www.econ.ku.dk More information through EDIRC
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Keywords: hiring function ; UV-curve ; cointegrated VAR-Model ; smooth transition functions ; mismatch ; Other versions of this item:
Find related papers by JEL classification: J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
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references Cited by : (explanations , 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.)
Aki Kangasharju & Sanna-Mari Hynninen & Jaakko Pehkonen, 2006.
"Regional Matching Frictions and Aggregate Unemployment ,"
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383, Government Institute for Economic Research Finland (VATT).
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Other versions: Heidi Soininen, 2007.
"Finnish Evidence of Changes in Labor Market Matching ,"
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