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Changes in the structure and duration of U.S. unemployment, 1967-1998

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  • Robert G. Valletta

Abstract

The unemployment rate is determined by the incidence and duration of unemployment spells. In this paper, I examine the time-series properties of unemployment incidence by reason and the duration of a typical unemployment spell. In line with earlier research, I find strong countercyclicality in unemployment. However, I also uncover an upward trend in duration that is entirely attributable to rising incidence and duration of permanent job loss. These changes in the structure and duration of unemployment have various policy implications.

Suggested Citation

  • Robert G. Valletta, 1998. "Changes in the structure and duration of U.S. unemployment, 1967-1998," Economic Review, Federal Reserve Bank of San Francisco, pages 29-40.
    • Handle: RePEc:fip:fedfer:y:1998:p:29-40:n:3
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    Cited by:

    1. Della Lee Sue, 2008. "Unemployment Index: A Multidimensional Measure of Labor Market Efficiency," New York Economic Review, New York State Economics Association (NYSEA), vol. 39(1), pages 44-69.
    2. Thomas B. King, 2005. "Labor productivity and job-market flows: trends, cycles, and correlations," Supervisory Policy Analysis Working Papers 2005-04, Federal Reserve Bank of St. Louis, revised 2005.
    3. Robert G. Valletta, 2002. "Recent trends in unemployment duration," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue nov22.
    4. Mukoyama, Toshihiko & Sahin, Aysegl, 2009. "Why did the average duration of unemployment become so much longer?," Journal of Monetary Economics, Elsevier, vol. 56(2), pages 200-209, March.
    5. Pedro Portugal & José Ferreira Machado & Juliana Guimarães, 2006. "U.S. Unemployment Duration: Has Long Become Longer or Short Become Shorter?," Working Papers w200613, Banco de Portugal, Economics and Research Department.

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    Keywords

    Unemployment;

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