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An Empirical Model of Sectoral Movements by Unemployed Workers

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  • Thomas, Jonathan M
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    Using Canadian data, the author investigates the relationships among sectoral mobility, unemployment spells, and total unemployment. Recent North American evidence suggests that incidence shifts toward high wage-high tenure workers may increase equilibrium unemployment through decreasing sectoral mobility and increasing spells. Using a multiple spell transition model, the author finds that, while shifts toward such workers may have these effects, composition changes that lead to higher mobility can also increase unemployment. A further investigation into the relative roles of mobility and spell lengths in driving total unemployment indicates that the influence of the former is comparatively small. Copyright 1996 by University of Chicago Press.

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    File URL: http://dx.doi.org/10.1086/209806
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    Article provided by University of Chicago Press in its journal Journal of Labor Economics.

    Volume (Year): 14 (1996)
    Issue (Month): 1 (January)
    Pages: 126-153

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    Handle: RePEc:ucp:jlabec:v:14:y:1996:i:1:p:126-53
    Contact details of provider: Web page: http://www.journals.uchicago.edu/JOLE/

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    1. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-782, July.
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    8. S. Lael Brainard & David M. Cutler, 1993. "Sectoral Shifts and Cyclical Unemployment Reconsidered," The Quarterly Journal of Economics, Oxford University Press, vol. 108(1), pages 219-243.
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    13. Lilien, David M, 1982. "Sectoral Shifts and Cyclical Unemployment," Journal of Political Economy, University of Chicago Press, vol. 90(4), pages 777-793, August.
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    15. Alan B. Krueger & Cecilia E. Rouse, 1994. "New Evidence on Workplace Education," Working Papers 708, Princeton University, Department of Economics, Industrial Relations Section..
    16. Alan Krueger & Cecilia Rouse, 1994. "New Evidence on Workplace Education," Working Papers 708, Princeton University, Department of Economics, Industrial Relations Section..
    17. S. C. Salop, 1973. "Systematic Job Search and Unemployment," Review of Economic Studies, Oxford University Press, vol. 40(2), pages 191-201.
    18. Gerard J. van den Berg & Ton Steerneman, 1991. "The Correlation of Durations in Multivariate Hazard Rate Models," Discussion Papers 960, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    19. Narendranathan, W & Nickell, S & Stern, J, 1985. "Unemployment Benefits Revisited," Economic Journal, Royal Economic Society, vol. 95(378), pages 307-329, June.
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