The Flow into Unemployment in Britain
This paper examines a largely neglected aspect of unemployment dynamics, namely the flow into unemployment. A model is set up relating this to the demand for labor and the quit rate. The empirical results lend considerable support to the model: a fall in planned employment growth or a fall in the quit rate both raise the inflow rate. The implications of the results for unemployment-vacancy analysis are discussed, and the distinction made between symmetric and asymmetric shocks to the matching function. Copyright 1992 by Royal Economic Society.
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Volume (Year): 102 (1992)
Issue (Month): 413 (July)
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