Title

An alternative measure of structural unemployment

Authors

Authors

U. Aysun; F. Bouvet;R. Hofler

Comments

Authors: contact us about adding a copy of your work at STARS@ucf.edu

Abbreviated Journal Title

Econ. Model.

Keywords

Frictional; Cyclical; Structural unemployment; Stochastic frontier; STOCHASTIC FRONTIER APPROACH; NATURAL RATE; COMPOSED ERROR; LABOR-MARKETS; COMPONENTS; EFFICIENCY; MODELS; NAIRU; Economics

Abstract

In this paper we derive an alternative measure for structural unemployment using a stochastic frontier analysis. This measure, by empirical design, is always less than total unemployment and it is. thus, more consistent with the theoretical description of structural unemployment than its usual interpretation as a smoothed long-run average of total unemployment. We find that our measure does not always track the long-run trends in total unemployment in the U.S. and when compared to the existing measures can provide different insights into the evolution of structural unemployment. Demographic and regional evidences offer some validation for our approach and allow us to determine how demographic and regional factors are related to the variation in structural unemployment across time and regions. (C) 2014 Elsevier B.V. All rights reserved.

Journal Title

Economic Modelling

Volume

38

Publication Date

1-1-2014

Document Type

Article

Language

English

First Page

592

Last Page

603

WOS Identifier

WOS:000334137900066

ISSN

0264-9993

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