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The importance of frequency in estimating labour market transition rates

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  • Pedro Gomes

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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

Suggested Citation

  • 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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    References listed on IDEAS

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    Cited by:

    1. Julien Albertini & Arthur Poirier & Thepthida Sopraseuth, 2019. "Informal Work along the Business Cycle: Evidence from Argentina," Working Papers halshs-02112004, HAL.
    2. Razzu, Giovanni & Singleton, Carl, 2016. "Gender and the business cycle: An analysis of labour markets in the US and UK," Journal of Macroeconomics, Elsevier, vol. 47(PB), pages 131-146.
    3. Giovanni Razzu & Carl Singleton, 2014. "Gender and the Business Cycle: A Stocks and Flows Analysis of US and UK Labour Market States," Economics & Management Discussion Papers em-dp2014-10, Henley Business School, Reading University.
    4. Parkhomenko, Andrii, 2016. "Opportunity to Move: Macroeconomic Effects of Relocation Subsidies," MPRA Paper 75256, University Library of Munich, Germany.

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