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Can Matching Frictions Explain the Increase in Mexican Unemployment After 2008?

Author

Listed:
  • Arroyo Miranda Juan
  • Gómez Cram Roberto
  • Lever Guzmán Carlos

Abstract

We use a novel data set on firm vacancies and job seekers from a Mexican government job placement service to analyze whether changes in matching frictions can explain the large and persistent increase in Mexican unemployment after the 2008 global financial crisis. We find evidence of a statistically signicant reduction in the efficiency of the matching function during the crisis. The estimated effect explains about 70 basis points of the 233 basis points observed increase in the unemployment rate. Hence, these results suggest that changes in matching frictions cannot explain most of the increase in unemployment.

Suggested Citation

  • Arroyo Miranda Juan & Gómez Cram Roberto & Lever Guzmán Carlos, 2014. "Can Matching Frictions Explain the Increase in Mexican Unemployment After 2008?," Working Papers 2014-08, Banco de México.
  • Handle: RePEc:bdm:wpaper:2014-08
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    File URL: https://www.banxico.org.mx/publications-and-press/banco-de-mexico-working-papers/%7BD2DC8D86-6A60-5BDE-2B74-F2D61616D33B%7D.pdf
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    Cited by:

    1. Matteo Bobba & Luca Flabbi & Santiago Levy, 2022. "Labor Market Search, Informality, And Schooling Investments," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(1), pages 211-259, February.

    More about this item

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • 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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