Dispersion of Sectoral Unemployment and the Aggregate Phillips Curve PDF Download

Author: Phil Cummins
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Author: Wolfgang Franz
Publisher: Springer Science & Business Media
ISBN: 3642581633
Category : Political Science
Languages : en
Pages : 142

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High and persistent unemployment rates in Europe during the eighties gave rise to a lively discussion about the nature and causes of joblessness. Among other sources structural unemployment was blamed for the lack of response of unemployment to increasing aggregate demand. Renewed attention was thus devoted to an analysis of the magnitude and the development of structural unemployment as well to its possi ble determinants. In this literature, the Beveridge curve experienced a resurrection and, at first glance, it seemed to be an appropriate tool to analyse the aforementioned issues. However, it was soon recognized that the Beveridge curve, i. e. the relation between unemployment and vacancies, was anything but stable, thus requiring a care ful distinction between dynamic loops around a (stable?) long-run Beveridge curve and possible shifts due to, say, an increasing mismatch between labor supplied and demanded. The controversy is far from being settled at the time of this writing. This book contains a collection of hitherto unpublished papers which are devoted to a theoretical and econometric analysis of structural unemployment. The papers put considerable emphasis on the question to what extent the Beveridge curve can serve as an adequate tool for such studies. The countries under consideration are Germany and Austria. In what follows a very brief summary of each paper will be outlined. Franz and Siebeck present, at some length, a theoretical and econometric analysis of the Beveridge curve in Germany.

Author: Hiroshi Fujiki
Publisher:
ISBN:
Category : Inflation (Finance)
Languages : en
Pages : 36

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This paper argues that estimation of the Phillips curve for Japan should take account of the geographic dispersion of labor-market conditions. We find evidence that the relationship between wage inflation and the unemployment rate is convex. With such convexity, wage inflation can occur when unemployment rates across regions become more disperse, even if the aggregate unemployment rate is unchanged. We show that controlling for the geographic dispersion of unemployment rates yields a flatter Phillips curve and a higher natural rate of unemployment.--Publisher's description.

Author: Lawrence F. Katz
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Recent work by David Lilien has argued that the existence of a strong positive correlation between the dispersion of employment growth rates across sectors (G) and the unemployment rate implies that shifts in demand from some sectors to others are responsible for a substantial fraction of cyclical variation in unemployment. This paper demonstrates that, under certain empirically satisfied conditions, aggregate demand movements alone can produce a positive correlation between G and the unemployment rate. Two tests are developed which permit one to distinquish between a pure sectoral shift interpretation and a pure aggregate demand interpretation of this positive correlation. The finding that G and the volume of help wanted advertising are negatively related and the finding that G is directly associated with the change in unemployment rather than with the level of unemployment both support an aggregate demand interpretation. A proxy for sectoral shifts that is purged of the influence of aggregate demand is then developed. Models which allow sectoral shifts in the composition of demand and fluctuations in the aggregate level of demand to affect the unemployment rate independently are estimated using this proxy. The results support the view that pure sectoral shifts have not been an important source of cyclical fluctuations in unemployment

Author: Ellen R. Rissman
Publisher:
ISBN:
Category : Inflation (Finance)
Languages : en
Pages : 48

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Author: Ellen R. Rissman
Publisher:
ISBN:
Category : Inflation (Finance)
Languages : en
Pages : 42

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Author: S. Lael Brainard
Publisher:
ISBN:
Category : Rate of return
Languages : en
Pages : 80

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This paper examines the importance of sectoral reallocation and cyclical unemployment; in the postwar US economy. It develops a new measure of reallocation shocks based on the variance of industry stock market excess returns over time, termed cross section volatility. Data on unemployment and vacancies is used to establish that the cross section volatility series is effective in isolating reallocation shocks. The series is then used to measure the contribution of reallocation shocks to aggregate unemployment and to unemployment; of varying durations. On average, about 40 percent of aggregate unemployment is explained by reallocation, but much of the variance of unemployment through time is better explained by cyclical shocks. Reallocation shocks account; for a relatively larger share of long duration unemployment.

Author: MichaelJ. Piore
Publisher: Routledge
ISBN: 1351537903
Category : Business & Economics
Languages : en
Pages : 433

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Originally published in 1979, this reader presents an industrialist view of the labour market and economics as they stood at the time in the United States. The essays collated aim to answer macroeconomic questions on this topic as well as exploring issues related closely to employment and inflation. This title will be of interest to students of business and economics.

Author: Sanford V. Berg
Publisher:
ISBN:
Category : Employment (Economic theory)
Languages : en
Pages : 58

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Author: Elizabeth Ann Savoca
Publisher:
ISBN:
Category :
Languages : en
Pages : 236

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