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On the measurement of mismatch

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  • Carsten Ochsen

Abstract

We use a definition of an equilibrium rate of unemployment as a mismatch indicator. An application of the indicator to nine Organization for Economic Cooperation and Development (OECD) countries leads to diverging results. Most of the considered countries have experienced increasing mismatch in the 1970s and decreasing mismatch in the 1990s. The latter result is somewhat surprising, since mismatch was expected to be increasing in the 1990s. However, the estimates for Germany are against this international trend. Mismatch is not in general lower in countries with a more flexible labour market, but is decreasing in some of the countries which have chosen more flexibility on the labour market.

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  • Carsten Ochsen, 2009. "On the measurement of mismatch," Applied Economics Letters, Taylor & Francis Journals, vol. 16(4), pages 405-409.
    • Handle: RePEc:taf:apeclt:v:16:y:2009:i:4:p:405-409
    DOI: 10.1080/13504850601018569
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    2. Ochsen, Carsten, 2005. "Labour market institutions and unemployment revisited," Thuenen-Series of Applied Economic Theory 49, University of Rostock, Institute of Economics.

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    More about this item

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J69 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Other
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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