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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
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Handle: RePEc:fip:fedfwp:2012-24
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  1. Budd, Alan & Levine, Paul & Smith, Peter, 1987. "Long-term unemployment and the shifting U-V curve : A multi-country study," European Economic Review, Elsevier, vol. 31(1-2), pages 296-305.
  2. Nakajima, Makoto, 2012. "A quantitative analysis of unemployment benefit extensions," Journal of Monetary Economics, Elsevier, vol. 59(7), pages 686-702.
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  5. Schulhofer-Wohl, Sam, 2012. "Negative equity does not reduce homeowners’ mobility," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Feb, pages 1-17.
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  8. Regis Barnichon & Michael Elsby & Bart Hobijn & Aysegül Sahin, 2010. "Which industries are shifting the Beveridge curve?," Working Paper Series 2010-32, Federal Reserve Bank of San Francisco.
  9. Robert Shimer, 2012. "Reassessing the Ins and Outs of Unemployment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 15(2), pages 127-148, April.
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  11. Johannes F. Schmieder† & Till von Wachter & Stefan Bender, 2011. "The Effects Of Extended Unemployment Insurance Over The Business Cycle: Evidence From Regression Discontinuity Estimates Over Twenty Years," Boston University - Department of Economics - Working Papers Series WP2011-063, Boston University - Department of Economics.
  12. Olivier Blanchard & Justin Wolfers, 1999. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," NBER Working Papers 7282, National Bureau of Economic Research, Inc.
  13. Fatih Karahan & Serena Rhee, 2013. "Geographical reallocation and unemployment during the Great Recession: the role of the housing bust," Staff Reports 605, Federal Reserve Bank of New York.
  14. Michael Elsby & Bart Hobijn & Aysegul Sahin, 2008. "Unemployment Dynamics in the OECD," NBER Working Papers 14617, National Bureau of Economic Research, Inc.
  15. Anders Forslund & Alan B. Krueger, 2008. "Did Active Labour Market Policies Help Sweden Rebound from the Depression of the Early 1990s?," Working Papers 1035, Princeton University, Department of Economics, Center for Economic Policy Studies..
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  17. Vincent Sterk, 2010. "Home Equity, Mobility, and Macroeconomic Fluctuations," DNB Working Papers 265, Netherlands Central Bank, Research Department.
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  24. repec:iab:iabzaf:v:40:i:1:p:45-64 is not listed on IDEAS
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