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The Rise in Danish Unemployment: Reallocation or Mismatch?

Author

Listed:
  • Karsten Albæk

    (Institute of Economics, University of Copenhagen)

  • Henrik Hansen

    (Institute of Economics, University of Copenhagen)

Abstract

The two main competing theories for the outward shift in the uv-curve are investigated: Increased separations from employment at a given employment level (reallocation) and decreased levels of hires, given unemployment and vacancies (mismatch). Shifts in the uv-curve and the hiring function are modelled by smooth transition functions, and the hypothesis of analogous shifts in the two curves is tested and accepted. This is interpreted as evidence in favor of the mismatch hypotheses.

Suggested Citation

  • Karsten Albæk & Henrik Hansen, "undated". "The Rise in Danish Unemployment: Reallocation or Mismatch?," CAM Working Papers 2004-13, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  • Handle: RePEc:kud:kuieca:2004_13
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    File URL: http://www.econ.ku.dk/cam/wp0910/wp0203/2004-13.pdf/
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    Cited by:

    1. Jan Svejnar & Joanna Tyrowicz & Lucas van der Velde, 2015. "Productivity and Inequality Effects of Rapid Labor Reallocation – Insights from a Meta-Analysis of Studies on Transition," Working Papers 2015-11, Faculty of Economic Sciences, University of Warsaw.
    2. Joanna Tyrowicz & Lucas Velde & Jan Svejnar, 2017. "Effects Of Labor Reallocation On Productivity And Inequality—Insights From Studies On Transition," Journal of Economic Surveys, Wiley Blackwell, vol. 31(3), pages 712-732, July.
    3. Kangasharju, Aki & Hynninen, Sanna-Mari & Pehkonen, Jaakko, 2006. "Regional Matching Frictions and Aggregate Unemployment," Discussion Papers 383, VATT Institute for Economic Research.
    4. Saleh Alkafri, 2011. "Transition from High Education to the Labour Market: Unemployment within Graduates from the Gender Prospective In the Palestinian Territory," Working Papers 30, AlmaLaurea Inter-University Consortium.
    5. Heidi Soininen, 2007. "Finnish Evidence of Changes in Labor Market Matching," Finnish Economic Papers, Finnish Economic Association, vol. 20(1), pages 57-71, Spring.
    6. Friedrich L. Sell, 2016. "Combining the Beveridge and the Phillips Curve into an Integrative Model: The Modified Output Gap," Review of Economics & Finance, Better Advances Press, Canada, vol. 6, pages 1-12, May.

    More about this item

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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