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
Copyright Status
Unknown
Socpus ID
84896544301 (Scopus)
Source API URL
https://api.elsevier.com/content/abstract/scopus_id/84896544301
STARS Citation
Aysun, Uluc; Bouvet, Florence; and Hofler, Richard, "An Alternative Measure Of Structural Unemployment" (2014). Scopus Export 2010-2014. 9809.
https://stars.library.ucf.edu/scopus2010/9809