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Why Are Recessions As Deep As They Are? The Behaviour Over Time Of The Outflow From Unemployment: A New Perspective

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Author Info
ROBERT DIXON
JOHN FREEBAIRN
G. C. LIM

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Abstract

In this paper we deal with five related questions. What are the 'stylised facts'about the behaviour of flows into and out of unemployment and the Unemployment Rate in Australia, especially in recessions? Why does the number of persons flowing out of Unemployment (including the number flowing into employment) rise in recessions? How does outflow behaviour affect the severity of recessions? What has been the history of the probability of any one unemployed person exiting unemployment and what is the elasticity of this probability with respect to the Unemployment Rate? Has this elasticity been changing over time and, if so, what are the consequences of this for the severity of recessions?

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File URL: http://www.economics.unimelb.edu.au/SITE/research/workingpapers/wp02/842.pdf
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Publisher Info
Paper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 842.

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Length: 43 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:mlb:wpaper:842

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Related research
Keywords: Worker Flows; Business Cycle; Unemployment;

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Find related papers by JEL classification:
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution

References listed on IDEAS
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.:

  1. Burgess, Simon M., 1994. "Matching models and labour market flows," European Economic Review, Elsevier, vol. 38(3-4), pages 809-816, April. [Downloadable!] (restricted)
  2. Dixon, R. & Lim, G.C. & Thomson, J., 2001. "Australian Gross Flows Data: The Labour Force Survey and the Size of the Population Represented by the Matched Sample," Department of Economics - Working Papers Series 810, The University of Melbourne.
    Other versions:
  3. Burda, Michael & Wyplosz, Charles, 1994. "Gross worker and job flows in Europe," European Economic Review, Elsevier, vol. 38(6), pages 1287-1315, June. [Downloadable!] (restricted)
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  4. Jeff Borland, 1990. "Unemployment in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 23(1), pages 41-51. [Downloadable!] (restricted)
  5. William Foster, 1981. "Gross Flows in the Australian Labour Market A First Look," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 14(4), pages 57-64. [Downloadable!] (restricted)
  6. Dixon, R., 2001. "Australian Labour Force Data: How Representative is the 'Population Represented by the Matched Sample'?," Department of Economics - Working Papers Series 772, The University of Melbourne. [Downloadable!]
  7. Poterba, James M & Summers, Lawrence H, 1995. "Unemployment Benefits and Labor Market Transitions: A Multinomial Logit Model with Errors in Classification," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 207-16, May. [Downloadable!] (restricted)
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(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.)

  1. Robert Dixon & John Freebairn & G. C. Lim, 2004. "A Framework For Understanding Changes In The Unemployment Rate In A Flows Context: An Examination Net Flows In The Australian Labour Market," Department of Economics - Working Papers Series 910, The University of Melbourne. [Downloadable!]
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