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The Recent Evolution of the U.S. Beveridge Curve: Evidence from the ARDL Approach

Author

Listed:
  • Richard Raines

    (Department of Economics, School of Management, University of Alaska Fairbanks)

  • Jungho Baek

    (Department of Economics, School of Management, University of Alaska Fairbanks)

Abstract

Using a search and match model of employment, and labor market data from 2000 to the present, this paper provides updated empirical evidence of the U.S. Beveridge Curve - an inverse unemployment-vacancy (UV) relationship - for the periods before and after the 2007-2009 recession. Using Job Openings and Labor Turnover Survey (JOLTS) data and an enhanced econometric technique - the autoregressive distributed lag (ARDL) approach, our results confirm the existence of the Beveridge Curve for the U.S.. We also find empirical evidence of a rightward shift in the U.S. Beveridge Curve following the Great Recession, potentially indicating increases in labor market mismatch or structural frictions in the U.S. labor market.

Suggested Citation

  • Richard Raines & Jungho Baek, 2016. "The Recent Evolution of the U.S. Beveridge Curve: Evidence from the ARDL Approach," Review of Economics & Finance, Better Advances Press, Canada, vol. 6, pages 14-24, August.
    • Handle: RePEc:bap:journl:160302
    Note: The authors are grateful to an anonymous referee and Haim Shalit for helpful comments.
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    References listed on IDEAS

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    7. Mary C. Daly & Bart Hobijn & Aysegül Sahin & Robert G. Valletta, 2012. "A Search and Matching Approach to Labor Markets: Did the Natural Rate of Unemployment Rise?," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 3-26, Summer.
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    Cited by:

    1. Finn Robinson, 2020. "Vacancies, unemployment and labour market slack in New Zealand," Reserve Bank of New Zealand Analytical Notes series AN2020/07, Reserve Bank of New Zealand.

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    More about this item

    Keywords

    ARDL model; Beveridge curve; Unemployment; Vacancy;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • D49 - Microeconomics - - Market Structure, Pricing, and Design - - - Other
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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