Title
An alternative measure of structural unemployment
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
ISSN
0264-9993
Recommended Citation
"An alternative measure of structural unemployment" (2014). Faculty Bibliography 2010s. 5008.
https://stars.library.ucf.edu/facultybib2010/5008
Comments
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