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Unemployment and Spell Duration during the Great Recession in the EU

Author Info

Listed author(s):
  • Carlos Gradín
  • Olga Cantó
  • Coral del Río

Abstract

The current economic recession has had unequal consequences on employment depending on the country considered. It is generally accepted that the negative impact of unemployment on individual welfare can be very different depending on its duration. However, conventional statistics on unemployment do not adequately capture to what extent the recession is not only increasing the incidence of unemployment but also its severity in terms of duration in time of ongoing unemployment spells. In this paper, we follow Shorrocks’s (2009a,b) proposal of a duration-sensitive measure of unemployment in order to analyze the different dynamic characteristics of unemployment in a selected group of European Union countries during the current Great Recession. Our results add some evidence on the relevance of incorporating the duration dimension in measuring unemployment and provide a tool for dynamic analysis based on cross-sectional data.

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Paper provided by Universidade de Vigo, Departamento de Economía Aplicada in its series Working Papers with number 1205.

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Length: 26 pages
Date of creation: Sep 2012
Handle: RePEc:vig:wpaper:1205
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Keywords: measurement of unemployment; spell duration; European Union;

Other versions of this item:

Find related papers by JEL classification:
  • D30 - Microeconomics - - Distribution - - - General
  • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
  • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
  • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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  1. Martin Riese & K. Brunner, 1998. "Measuring the severity of unemployment," Journal of Economics, Springer, vol. 67(2), pages 167-180, June.
  2. Guell, Maia & Hu, Luojia, 2006. "Estimating the probability of leaving unemployment using uncompleted spells from repeated cross-section data," Journal of Econometrics, Elsevier, vol. 133(1), pages 307-341, July.
  3. Cahuc, Pierre & Carcillo, Stéphane, 2011. "Is Short-Time Work a Good Method to Keep Unemployment Down?," IZA Discussion Papers 5430, Institute for the Study of Labor (IZA).
  4. Vani K . Borooah, 2002. "A Duration‐sensitive Measure of the Unemployment Rate: Theory and Application," LABOUR, CEIS, vol. 16(3), pages 453-468, 09.
  5. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-659, May.
  6. Paul, Satya, 1991. "On the measurement of unemployment," Journal of Development Economics, Elsevier, vol. 36(2), pages 395-404, October.
  7. Stephen W. Salant, 1977. "Search Theory and Duration Data: A Theory of Sorts," The Quarterly Journal of Economics, Oxford University Press, vol. 91(1), pages 39-57.
  8. Hector Sala & José I. Silva & Manuel Toledo, 2012. "Flexibility at the Margin and Labor Market Volatility in OECD Countries," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(3), pages 991-1017, 09.
  9. Paul, Satya, 2001. "A Welfare Loss Measure of Unemployment with an Empirical Illustration," Manchester School, University of Manchester, vol. 69(2), pages 148-163, March.
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Cited by:

  1. Camp, Kevin & Waldorf, Brigitte, 2014. "The impact of spatial flexibility on unemployment duration in young college-educated workers," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170678, Agricultural and Applied Economics Association.

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