Modeling labor market flows on the basis of sectoral employment in Europe

Savić, Mirko and Zubović, Jovan (2017) Modeling labor market flows on the basis of sectoral employment in Europe. In: Tools and techniques for economic decision analysis. IGI Global, Business Science Reference, Hershey, PA, pp. 151-169. ISBN 978-15-22509-59-2

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By tracking the cross-sectoral distribution of employment growth, it is possible to significantly improve the ability to understand aggregate fluctuations of labor force. Adequate model can provide information which sectors have stronger impact on unemployment-to-employment transitional probability. The main goal of this research is modeling the influence of sectoral employment on outflow rate across Europe during economic crisis. Authors argue that shifts in sectoral demand have strong influence on cyclical variation in unemployment-to-employment transition. Study also uncovers highly linear relationships of outflow rate from unemployment to employment and job flows at sectoral level. Empirical data proved a strong positive correlation between dispersion of employment growth across sectors and outflow rate in Europe. Shifts in demand from some sectors to the others are responsible for significant fraction of unemployment-to-employment transition probability. Reallocation shocks accounted for about 70 to 80 percent variability of outflow rates across Europe, during the 2008-2012.

Item Type: Book Section
Additional Information: COBISS.ID=512428130
Research Department: Welfare Economics
Depositing User: Jelena Banovic
Date Deposited: 22 Mar 2017 14:40
Last Modified: 05 Apr 2020 14:00

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