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The natural rate of unemployment and the unemployment gender gap

Author

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  • Maurizio Baussola

    (DISCE, Università Cattolica)

  • Chiara Mussida

    (DISCE, Università Cattolica)

Abstract

Recent labour market developments include an increase in labour market mismatches, in that high unemployment rates coexist with significant levels of vacancies. This pattern is particularly evident in the US economy, but is also significant within the European Union; it implies that the natural rate of unemployment may rise significantly, thus suggesting that even if policies aimed at reducing it are implemented, the unemployment rate may remain steady if not increase. An important factor possibly influencing such an increase is related to the gender differential in employment opportunities. This is particularly relevant wherever such a differential represents a structural characteristic of the labour market, as in the case of Italy. The present work focuses on this issue and presents a methodology to decompose the natural rate of unemployment by gender, thus defining it in terms of equilibrium labour market flows between the aggregate states of the labour market (Employment, Unemployment, Non Labour Force). In addition, we propose estimates of the determinants of the unemployment gender gap, in order to pinpoint the relative roles of individual characteristics and structural factors in determining this difference.

Suggested Citation

  • Maurizio Baussola & Chiara Mussida, 2011. "The natural rate of unemployment and the unemployment gender gap," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1180, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    • Handle: RePEc:ctc:serie2:dises1180
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    References listed on IDEAS

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    1. Ghazala Azmat & Maia Güell & Alan Manning, 2006. "Gender Gaps in Unemployment Rates in OECD Countries," Journal of Labor Economics, University of Chicago Press, vol. 24(1), pages 1-38, January.
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    9. repec:mul:je8794:doi:10.1429/38298:y:2012:i:1:p:103 is not listed on IDEAS
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    Cited by:

    1. Hugo López Castaño & Francisco Lasso Valderrama, 2015. "Flujos de trabajadores en el mercado laboral colombiano, determinantes de las diferencias entre hombres y mujeres, y futuro laboral esperado," IDB Publications (Working Papers) 88817, Inter-American Development Bank.
    2. Maurizio Baussola & Chiara Mussida, 2014. "Transitions in the Labour Market: Discouragement Effect and Individual Characteristics," LABOUR, CEIS, vol. 28(2), pages 209-232, June.

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    More about this item

    Keywords

    unemployment gender gap; differentials; multinomial models; transition probability matrix.;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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