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An Empirical Model of Sectoral Movements by Unemployed Workers

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  • Thomas, Jonathan M

Abstract

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.

Suggested Citation

  • Thomas, Jonathan M, 1996. "An Empirical Model of Sectoral Movements by Unemployed Workers," Journal of Labor Economics, University of Chicago Press, vol. 14(1), pages 126-153, January.
  • Handle: RePEc:ucp:jlabec:v:14:y:1996:i:1:p:126-53
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    References listed on IDEAS

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    1. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-782, July.
    2. repec:fth:prinin:329 is not listed on IDEAS
    3. Alan B. Krueger & Cecilia E. Rouse, 1994. "New Evidence on Workplace Education," Working Papers 708, Princeton University, Department of Economics, Industrial Relations Section..
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    10. McLaughlin, Kenneth J, 1991. "A Theory of Quits and Layoffs with Efficient Turnover," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 1-29, February.
    11. Ruhm, Christopher J, 1991. "Are Workers Permanently Scarred by Job Displacements?," American Economic Review, American Economic Association, vol. 81(1), pages 319-324, March.
    12. Lawrence H. Summers, 1986. "Why is the Unemployment Rate So Very High near Full Employment," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 17(2), pages 339-396.
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    14. Douglas L. Kruse, 1988. "International Trade and the Labor Market Experience of Displaced Workers," ILR Review, Cornell University, ILR School, vol. 41(3), pages 402-417, April.
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    Cited by:

    1. Lars Vilhuber, 1999. "Sector-Specific Training and Mobility in Germany," CIRANO Working Papers 99s-03, CIRANO.
    2. Dimitris Pavlopoulos & Didier Fouarge, 2010. "Escaping low pay: do male labour market entrants stand a chance?," International Journal of Manpower, Emerald Group Publishing, vol. 31(8), pages 908-927, November.
    3. VILHUBERT, Lars, 1999. "Sector-Specific on-the-Job Training: Evidence from U.S. Data," Cahiers de recherche 9906, Universite de Montreal, Departement de sciences economiques.
    4. repec:rim:rimwps:27-08 is not listed on IDEAS
    5. Phimister, Euan & Theodossiou, Ioannis & Upward, Richard, 2004. "Is It Easier To Escape From Low Pay In Urban Areas? Evidence From The Uk," Discussion Papers 31790, University of Aberdeen Business School, Centre for European Labour Market Research (CELMR).
    6. Robert J. R. Elliott & Joanne Lindley, 2006. "Skill Specificity And Labour Mobility: Occupational And Sectoral Dimensions," Manchester School, University of Manchester, vol. 74(3), pages 389-413, June.
    7. Cunningham, Wendy V., 2001. "Sectoral allocation by gender of Latin American workers over the liberalization period of the 1990s," Policy Research Working Paper Series 2742, The World Bank.
    8. Chen, Jinzhu & Kannan, Prakash & Loungani, Prakash & Trehan, Bharat, 2012. "New evidence on cyclical and structural sources of unemployment," Proceedings, Federal Reserve Bank of San Francisco, issue March, pages 1-23.
    9. Prakash Loungani & Bharat Trehan, 1997. "Explaining unemployment: sectoral vs aggregate shocks," Economic Review, Federal Reserve Bank of San Francisco, pages 3-15.
    10. Giovanni Gallipoli & Gianluigi Pelloni, 2013. "Macroeconomic Effects of Job Reallocations: A Survey," Review of Economic Analysis, Rimini Centre for Economic Analysis, vol. 5(2), pages 127-176, December.
    11. Giovanni Gallipoli & Gianluigi Pelloni, 2008. "Aggregate Shocks vs Reallocation Shocks: an Appraisal of the Applied Literature," Working Paper series 27_08, Rimini Centre for Economic Analysis.
    12. John Hassler & José V. Rodríguez Mora & Kjetil Storesletten & Fabrizio Zilibotti, 1998. "Equilibrium unemployment insurance," Economics Working Papers 605, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 1999.
    13. R J R Elliott & J Lindley, 2003. "Trade, Skills and Adjustment Costs: A Study of Intra-Sectoral Labour Mobility in the UK," The School of Economics Discussion Paper Series 0312, Economics, The University of Manchester.
    14. Lars Vilhuber, 1997. "Sector-Specific On-the-Job Training: Evidence from U.S. Data," CIRANO Working Papers 97s-42, CIRANO.

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