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Worker flows in Germany: Inspecting the time aggregation bias

  • Nordmeier, Daniela

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

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    "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))

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    Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 201212.

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    Length: 36 pages
    Date of creation: 02 May 2012
    Date of revision:
    Handle: RePEc:iab:iabdpa:201212
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    1. Gabriele Cardullo, 2010. "Matching Models Under Scrutiny: An Appraisal Of The Shimer Puzzle," Journal of Economic Surveys, Wiley Blackwell, vol. 24(4), pages 622-656, 09.
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    4. Bernd Fitzenberger & Ralf A. Wilke, 2010. "Unemployment Durations in West Germany Before and After the Reform of the Unemployment Compensation System during the 1980s," German Economic Review, Verein für Socialpolitik, vol. 11, pages 336-366, 08.
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    6. Chris Mulhearn & Howard R. Vane, 2008. "The Euro," Books, Edward Elgar, number 12566, March.
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    8. Ramey, Garey & Shigeru Fujita, 2006. "The Cyclicality of Job Loss and Hiring," University of California at San Diego, Economics Working Paper Series qt4nz8p839, Department of Economics, UC San Diego.
    9. Kluve, Jochen & Schaffner, Sandra & Schmidt, Christoph M., 2009. "Labor Force Status Dynamics in the German Labor Market - Individual Heterogeneity and Cyclical Sensitivity," Ruhr Economic Papers 139, Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI), Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    10. Jacobi, Lena & Kluve, Jochen, 2007. "Before and after the Hartz reforms: The performance of active labour market policy in Germany," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(1), pages 45-64.
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    15. Shigeru Fujita & Garey Ramey, 2007. "The cyclicality of separation and job finding rates," Working Papers 07-19, Federal Reserve Bank of Philadelphia.
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    18. 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.
    19. Jochen Kluve & Sandra Schaffner & Christoph M. Schmidt, 2009. "Labor Force Status Dynamics in the German Labor Market - Individual Heterogeneity and Cyclical Sensitivity," Ruhr Economic Papers 0139, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    20. 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.
    21. Bachmann, Ronald & Schaffner, Sandra, 2009. "Biases in the measurement of labour market dynamics," Technical Reports 2009,12, Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen.
    22. Ronald Bachmann, 2005. "Labour Market Dynamics in Germany: Hirings, Separations, and Job-to-Job Transitions over the Business Cycle," SFB 649 Discussion Papers SFB649DP2005-045, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    23. Yashiv, Eran, 2006. "U.S. Labor Market Dynamics Revisited," IZA Discussion Papers 2455, Institute for the Study of Labor (IZA).
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