Merhaba Misafir

Reassessing The Heterogeneity Hypothesis In Unemployment Dynamics

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Investigation of the sources of unemployment fluctuations has been a longstanding research objective. This line of research has attracted a great attention recently, because, as Shimer (2012) has confirmed that the celebrated Mortensen-Pissarides equilibrium search and matching model fails to explain the observed unemployment fluctuations for the USA. The aim of this study is to reexamine the flows into/out of unemployment by following Sider (1985) and Baker (1992) in order to find out whether Shimer’s results are still valid from a different perspective. Using the 1996-2012 data, we show that the heterogeneity hypothesis is still rejected but the degree of co-movement between the rate of unemployment and the aggregate expected duration is somewhat weaker, which casts doubt on Shimer’s conclusions.

Yayınlandığı Kaynak : ODTÜ Gelişme Dergisi
  • Yıl : 2015
  • Cilt : 42
  • ISSN : 1010-9935
  • Sayı : 1
  • eISSN : 1010-9935
  • Sayfa Aralığı : 0-0
  • IO Kayıt No : 38875
  • Yayıncı : ODTÜ Yayınları