The ins and outs of German unemployment: a transatlantic perspective

Hertweck, Matthias S.; Sigrist, Oliver

doi:10.1093/oep/gpv031

Cited by 23 publications

(18 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The countercyclicality of the separation rate has been shown to be substantial and influential for unemployment dynamics (e.g. Fujita and Ramey, 2009, Elsby, Michaels and Solon, 2009, and for Germany Nordmeier 2014, Jung and Kuhn, 2014, Hertweck and Sigrist, 2015. Cycles in matching efficiency occur because recruiting or search intensity of firms and workers depends on the severity of competition on the labour market which varies over the cycle (Davis et al, 2013, Davis, 2011.…”

Section: Discussion Of Trend and Cycle In Bc Componentsmentioning

confidence: 99%

“…The criticism about the traditional BC is twofold: First, in empirical work, such theoretical equilibria are often operationalized by (linear) relations between observed time series although these do not only contain long-run information and, consequently, do not appropriately reflect the market being in equilibrium. Elsby et al (2013), Nordmeier (2014, and Hertweck and Sigrist (2015) argue that especially on the German labour market actual unemployment may be an insufficient approximation of equilibrium unemployment. Second, several authors (e.g.…”

Section: The Model Theorymentioning

confidence: 99%

“…So far, we are aware of variance decomposition analyses and DSGE calibrations on the relevance of certain labour market parameters for unemployment (e.g. Hertweck and Sigrist, , Jung and Kuhn, ). We add to the literature as we build on consistent theory‐based estimates to divide BC dynamics into their structural and cyclical nature, control for their interaction and see how permanent and cyclical processes interfere in the development of the BC.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Decomposing Beveridge Curve Dynamics By Correlated Unobserved Components

Klinger

Weber

2016

Oxf Bull Econ Stat

View full text Add to dashboard Cite

Between 1979 and 2009, the German labour market moved along a Beveridge curve with changing slope that used to shift outwards but shifted inwards after severe labour market reforms had come into force. We analyse these dynamics and focus on the macroeconomic outcome of the reforms. For that purpose, we construct a new empirical model that links equilibrium unemployment theory to a flexible unobserved components model: we disentangle permanent and transitory components of matching efficiency and separation rate as well as unemployment and vacancies. Cointegration and identification are addressed. We find that matching efficiency and separation rate each account for about half of the inward shift. Thereby, the increase in trend matching efficiency is extraordinary and testifies to a permanent improvement on the labour market. Its visibility, however, was retarded by an overlay with a structural increase in tightness.

show abstract

Section: Discussion Of Trend and Cycle In Bc Componentsmentioning

confidence: 99%

Section: The Model Theorymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Decomposing Beveridge Curve Dynamics By Correlated Unobserved Components

Klinger

Weber

2016

Oxf Bull Econ Stat

View full text Add to dashboard Cite

show abstract

“…1 The latter paper also computes the monthly transitions based on administrative data. Also worth mentioning are Hertweck and Sigrist (2015), who compute the monthly transitions for Germany.…”

Section: Endnotesmentioning

confidence: 99%

The importance of frequency in estimating labour market transition rates

Gomes

2015

IZA J Labor Econ

View full text Add to dashboard Cite

Labour market transition rates are typically estimated using survey data, which are mainly carried out at monthly or quarterly frequency. I argue that rates from surveys at different frequencies are not comparable, even if corrected for time aggregation. I estimate labour market transition rates using monthly and quarterly frequency CPS data. I apply a time-aggregation correction to make them comparable. I find notable differences in terms of levels and volatilities. While the continuous time-aggregation correction does not alter the unemployment decomposition using the monthly survey, it does so when using the quarterly survey. Jel codes: E24; J60

show abstract

“…Other works examining the French labour market include Hairault et al (2012) and Fontaine (2016). Hertweck and Sigrist (2015) study the German labour market and Daouli et al (2012) the Greek labour market during the crisis. Despite looking at worker flows from different angles, all the papers in this exhaustive list have ignored the duality between the private and the public sectors.…”

Section: Introductionmentioning

confidence: 99%

Labour market flows: Accounting for the public sector

Fontaine¹,

Gálvez-Iniesta

Gomes

et al. 2020

Labour Economics

View full text Add to dashboard Cite

For the period between 2003 and 2018, we document a number of facts about worker gross flows in France, the United Kingdom, Spain and the United States, focussing on the role of the public sector. Using the French, Spanish and UK Labour Force Survey and the US Current Population Survey data, we examine the size and cyclicality of the flows and transition probabilities between private and public employment, unemployment and inactivity. We examine the stocks and flows by gender, age and education. We decompose contributions of private and public job-finding and job-separation rates to fluctuations in the unemployment rate. Publicsector employment contributes 20 percent to fluctuations in the unemployment rate in the UK, 15 percent in France and 10 percent in Spain and the US. Private-sector workers would forgo 0.5 to 2.9 percent of their wage to have the same job security as public-sector workers.

show abstract

The ins and outs of German unemployment: a transatlantic perspective

Cited by 23 publications

References 35 publications

Decomposing Beveridge Curve Dynamics By Correlated Unobserved Components

Decomposing Beveridge Curve Dynamics By Correlated Unobserved Components

The importance of frequency in estimating labour market transition rates

Labour market flows: Accounting for the public sector

Contact Info

Product

Resources

About