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Worker flows in Germany: Inspecting the time aggregation bias

Author

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  • Nordmeier, Daniela

    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

Abstract

"This paper analyzes the importance of time aggregation in the measurement of worker flows by exploiting daily information from German administrative data. Time aggregation caused by comparing monthly labor market states leads to an underestimation of total worker flows by around 10%. Contrary to the claim of Shimer (2005, 2012), the time aggregation bias in the separation rate is relatively unaffected by business cycle fluctuations, whereas the time aggregation bias in the job finding rate is procyclical. Nevertheless, monthly time aggregation does not have notable effects on the relative contributions to steady-state unemployment dynamics. The reconsideration of German worker flows reveals that both the job finding rate and the separation rate play an important role for German unemployment dynamics, but the job finding rate dominates in the long run." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Nordmeier, Daniela, 2012. "Worker flows in Germany: Inspecting the time aggregation bias," IAB Discussion Paper 201212, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:201212
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    File URL: http://doku.iab.de/discussionpapers/2012/dp1212.pdf
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    References listed on IDEAS

    as
    1. Philip, Jung & Moritz, Kuhn, 2011. "The Era of the U.S.-Europe Labor Market Divide: What can we learn?," MPRA Paper 32322, University Library of Munich, Germany.
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    Cited by:

    1. Klinger, Sabine & Weber, Enzo, 2014. "Decomposing Beveridge curve dynamics by correlated unobserved components: The impact of labour market reforms in Germany," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100499, Verein für Socialpolitik / German Economic Association.
    2. Gartner, Hermann & Merkl, Christian & Rothe, Thomas, 2012. "Sclerosis and large volatilities: Two sides of the same coin," Economics Letters, Elsevier, vol. 117(1), pages 106-109.
    3. Matthias S. Hertweck & Oliver Sigrist, 2012. "The Aggregate Effects of the Hartz Reforms in Germany," Working Paper Series of the Department of Economics, University of Konstanz 2012-38, Department of Economics, University of Konstanz.
    4. Wolfgang Nagl & Michael Weber, 2014. "Unemployment compensation and unemployment duration before and after the German Hartz IV reform," ifo Working Paper Series 186, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.

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