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The importance of frequency in estimating labour market transition rates

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  • Pedro Gomes

Abstract

Labour market transition rates are typically estimated using survey data, which are mainly carried out at monthly or quarterly frequency. I argue that rates from surveys at different frequencies are not comparable, even if corrected for time aggregation. I estimate labour market transition rates using monthly and quarterly frequency CPS data. I apply a time-aggregation correction to make them comparable. I find notable differences in terms of levels and volatilities. While the continuous time-aggregation correction does not alter the unemployment decomposition using the monthly survey, it does so when using the quarterly survey. Jel codes: E24; J60 Copyright Gomes; licensee Springer. 2015

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  • Pedro Gomes, 2015. "The importance of frequency in estimating labour market transition rates," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-10, December.
    • Handle: RePEc:spr:izalbr:v:4:y:2015:i:1:p:1-10:10.1186/s40172-015-0021-9
    DOI: 10.1186/s40172-015-0021-9
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    6. Andri Chassamboulli & Idriss Fontaine & Ismael Gálvez-Iniesta & Pedro Gomes, 2024. "Immigration and labour market flows," Post-Print hal-04768515, HAL.
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    8. Gaetano Basso & Salvatore Lo Bello & Francesca Subioli, 2023. "Labor market dynamics and geographical reallocations," Temi di discussione (Economic working papers) 1430, Bank of Italy, Economic Research and International Relations Area.
    9. Ajax Moreira & Miguel N. Foguel & Carlos Henrique Corseuil, 2021. "The ins and outs of unemployment over different time horizons," Empirical Economics, Springer, vol. 60(5), pages 2533-2556, May.
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