Links between labor supply and unemployment: Theory and empirics

Research output: Contribution to journalArticle

Abstract

A flow model of labor market participation is used to describe how various exogenous variations jointly affect unemployment and participation and provides short-run identification restrictions of a structural VAR. In some countries, fast rising female participation may have had a moderate short- and medium-run impact on unemployment rates. A variance decomposition exercise indicates that, in Continental Europe, participation is driven in the short run by unemployment shocks, whereas in the USA, it is driven by participation shocks (demography, immigration). Unemployment in Europe is driven by participation shocks, whereas in the USA, it is driven by unemployment shocks.

Original languageEnglish (US)
Pages (from-to)773-802
Number of pages30
JournalJournal of Population Economics
Volume22
Issue number3
DOIs
StatePublished - Jul 1 2009

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empirics
labor supply
unemployment
participation
unemployment rate
demography
Labor supply
Participation
Empirics
Unemployment
immigration
labor market

Keywords

  • Female participation
  • Labor market participation
  • Unemployment

ASJC Scopus subject areas

  • Demography
  • Economics and Econometrics

Cite this

Links between labor supply and unemployment : Theory and empirics. / Wasmer, Etienne.

In: Journal of Population Economics, Vol. 22, No. 3, 01.07.2009, p. 773-802.

Research output: Contribution to journalArticle

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