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Finnish Evidence of Changes in Labor Market Matching

Author

Listed:
  • Heidi Soininen

    (The Swedish School of Economics and B.A., HECER and The Bank of Finland, Finland)

Abstract

This paper models the Finnish labor market matching process for the period 1982:1–2002:3 using cointegrated VAR-analysis. The data is split into two periods. For the years prior to the economic crisis in the early 1990s a Beveridgecurve is found as the long-run relationship. The post-crisis period is dominated by a traditional matching-like relationship with strong negative association between unemployment and matching, stemming mainly from long-term unemployment. This suggests that some of the Finnish unemployment persistence can be traced back to changes in the matching process and particularly to the matching of the long-term unemployed.

Suggested Citation

  • Heidi Soininen, 2007. "Finnish Evidence of Changes in Labor Market Matching," Finnish Economic Papers, Finnish Economic Association, vol. 20(1), pages 57-71, Spring.
    • Handle: RePEc:fep:journl:v:20:y:2007:i:1:p:57-71
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    File URL: http://www.taloustieteellinenyhdistys.fi/images/stories/fep/fep12007_soininen.pdf
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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