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Unemployment Dynamics in the Nordics : Is there Heterogeneity in the Relative Importance of Ins and Outs?

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  • Thorleifsson, Oskar

    (University of Warwick)

Abstract

Unemployment by sub-group differs in terms of cyclical fluctuations. I examine whether there is heterogeneity in the relative contributions of the inflow and outflow rate to cyclical unemployment variations in the Nordics. The aggregate results suggest that fluctuations in the job-finding rate are a key driver of cyclical unemployment variations, excluding Norway. Despite notable differences in cyclical unemployment by gender, the contributions of ins and outs are roughly similar. However, evidence from Sweden and Denmark suggests that the separation rate is slightly more important for males compared to females. Substantially lower turnover for older workers makes comparison by age less reliable. Evidence from Sweden suggests notable differences by education level and between native- and foreign-born workers.

Suggested Citation

  • Thorleifsson, Oskar, 2021. "Unemployment Dynamics in the Nordics : Is there Heterogeneity in the Relative Importance of Ins and Outs?," Warwick-Monash Economics Student Papers 22, Warwick Monash Economics Student Papers.
    • Handle: RePEc:wrk:wrkesp:22
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/wmesp/manage/22_-_oskar_thorleifsson.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Unemployment dynamics ; job-finding rate ; job-separation rate ; worker heterogeneity JEL Classification: E24 ; E32 ; J63 ; J64;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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