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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

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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