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Mismatch Unemployment

Author Info

  • Ayşegül Şahin
  • Joseph Song
  • Giorgio Topa
  • Giovanni L. Violante

Abstract

We develop a framework where mismatch between vacancies and job seekers across sectors translates into higher unemployment by lowering the aggregate job-finding rate. We use this framework to measure the contribution of mismatch to the recent rise in U.S. unemployment by exploiting two sources of cross-sectional data on vacancies, JOLTS and HWOL, a new database covering the universe of online U.S. job advertisements. Mismatch across industries and occupations explains at most 1/3 of the total observed increase in the unemployment rate, whereas geographical mismatch plays no apparent role. The share of the rise in unemployment explained by occupational mismatch is increasing in the education level.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18265.

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Date of creation: Aug 2012
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Publication status: published as Ay?egül ?ahin & Joseph Song & Giorgio Topa & Giovanni L. Violante, 2014. "Mismatch Unemployment," American Economic Review, American Economic Association, vol. 104(11), pages 3529-64, November.
Handle: RePEc:nbr:nberwo:18265
Note: EFG LS
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Find related papers by JEL classification:
  • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
  • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
  • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
  • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
  • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
  • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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  7. repec:dgr:uvatin:20110160 is not listed on IDEAS
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Cited by:

  1. Alfred Garloff & Rüdiger Wapler, 2013. "Are the Number of Skilled Workers Running Out in Germany? The (Non)-Consequences of Demographic Change," ERSA conference papers ersa13p854, European Regional Science Association.
  2. Pascal Michaillat & Emmanuel Saez, 2014. "Aggregate Demand, Idle Time, and Unemployment," Upjohn Working Papers and Journal Articles 14-214, W.E. Upjohn Institute for Employment Research.
  3. John C. Williams, 2013. "The economy and Fed policy: follow the demand," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue feb25.
  4. Daniel Borowczyk-Martins & Gregory Jolivet & Fabien Postel-Vinay, 2013. "Accounting For Endogeneity in Matching Function Estimation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(3), pages 440-451, July.
  5. John C. Williams, 2013. "The economy and monetary policy: follow the demand," Speech 116, Federal Reserve Bank of San Francisco.
  6. repec:fip:fedfsp:y:2013:i:feb21 is not listed on IDEAS
  7. Schmutte, Ian M., 2014. "Free to Move? A Network Analytic Approach for Learning the Limits to Job Mobility," Labour Economics, Elsevier, vol. 29(C), pages 49-61.
  8. Arpaia, Alfonso & Kiss, Aron & Turrini, Alessandro, 2014. "Is Unemployment Structural or Cyclical? Main Features of Job Matching in the EU after the Crisis," IZA Policy Papers 91, Institute for the Study of Labor (IZA).

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