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Beveridge curve shifts across countries since the Great Recession

  • Bart Hobijn
  • Aysegül Sahin

We discuss the magnitude of and reasons for the shift in the Beveridge curve in the U.S. since the Great Recession and argue that skill mismatch and the extension of unemployment insurance benefits likely have played a nontrivial role in this shift. We then introduce a method to estimate fitted Beveridge curves for other OECD countries for which data on vacancies and employment by job tenure are available. We show that Portugal, Spain, Sweden, and the U.K. also experienced rightward shifts in their Beveridge curves. We argue that the shift in the first three countries is due to similar mismatch factors as in the U.S. while the shift in Sweden is due to labor market reforms passed right before the Great Recession.

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Paper provided by Federal Reserve Bank of San Francisco in its series Working Paper Series with number 2012-24.

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Date of creation: 2012
Handle: RePEc:fip:fedfwp:2012-24
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