An Examination of Net Flows in the Australian Labour Market
In this paper we investigate the behaviour of net flows of persons between employment, unemployment and not in the labour force in Australia between 1979-2003 and the relationship of these flows to changes in the unemployment rate over that period. We find that: flows from unemployment to employment exceed flows from employment to unemployment and that this is the case even in recessions; flows from employment to not in the labour force exceed flows from not in the labour force to employment and that this is the case even in booms, and; flows from not in the labour force to unemployment exceed flows from unemployment to not in the labour force and that this is the case even in recessions. Another important finding is that the reason why the participation rate is negatively correlated with the unemployment rate is because net flows between employment and not in the labour force and net flows between employment and unemployment are highly and positively correlated. This suggests that the so-called ‘discouraged-unemployed-worker’ effect is not a credible explanation for the endogeneity of the participation rate.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 8 (2005)
Issue (Month): 1 (March)
|Contact details of provider:|| Web page: http://business.curtin.edu.au/research/publications/journals/ajle/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ozl:journl:v:8:y:2005:i:1:p:25-42. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alan Duncan)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.