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Finnish Evidence of Changes in Labor Market Matching

  • Heidi Soininen


    (The Swedish School of Economics and B.A., HECER and The Bank of Finland, Finland)

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    This paper models the Finnish labor market matching process for the period 1982:1–2002:3 using cointegrated VAR-analysis. The data is split into two periods. For the years prior to the economic crisis in the early 1990s a Beveridgecurve is found as the long-run relationship. The post-crisis period is dominated by a traditional matching-like relationship with strong negative association between unemployment and matching, stemming mainly from long-term unemployment. This suggests that some of the Finnish unemployment persistence can be traced back to changes in the matching process and particularly to the matching of the long-term unemployed.

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    Article provided by Finnish Economic Association in its journal Finnish Economic Papers.

    Volume (Year): 20 (2007)
    Issue (Month): 1 (Spring)
    Pages: 57-71

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    Handle: RePEc:fep:journl:v:20:y:2007:i:1:p:57-71
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