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The ins and outs of UK unemployment

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Smith, Jennifer C. (2010) The ins and outs of UK unemployment. Working Paper. Coventry: University of Warwick. Dept. of Economics. Warwick economics research paper series (TWERPS), Vol.2010 (No.944).

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Abstract

This paper shows that in the UK, increases in unemployment in a recession are driven by rises in the separation rate. A new decomposition of unemployment dynamics is devised that does not require unemployment to be in steady state at all times. This is important because low UK transition rates – one quarter the size of the US –imply substantial deviation of unemployment from steady state near cyclical turning points. In periods of moderation, the job finding rate is shown to have most influence on UK unemployment dynamics. Evidence comes from the first study of monthly data derived from individuals’ labour market spells recorded in the British Household Panel Survey from 1988 to 2008.

Item Type:

Working or Discussion Paper (Working Paper)

Subjects:

H Social Sciences > HD Industries. Land use. Labor

Divisions:

Faculty of Social Sciences > Economics

Library of Congress Subject Headings (LCSH):

Unemployment -- Great Britain, Labor market -- Great Britain -- Mathematical models, Labor market -- Great Britain -- Statistics

Series Name:

Warwick economics research paper series (TWERPS)

Publisher:

University of Warwick. Dept. of Economics

Place of Publication:

Coventry

Official Date:

2010

Dates:

Date	Event
2010	Published

Volume:

Vol.2010

Number:

No.944

Institution:

University of Warwick

Status:

Not Peer Reviewed

Access rights to Published version:

Open Access

Funder:

Economic and Social Research Council (Great Britain) (ESRC)

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