Title

An Alternative Measure Of Structural Unemployment

Keywords

Cyclical; Frictional; Stochastic frontier; Structural unemployment

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. © 2014 Elsevier B.V.

Publication Date

1-1-2014

Publication Title

Economic Modelling

Volume

38

Number of Pages

592-603

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1016/j.econmod.2014.02.009

Socpus ID

84896544301 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/84896544301

This document is currently not available here.

Share

COinS