A general methodology to measure labour market dynamics

Davide Fiaschi; Cristina Tealdi

doi:10.48550/arXiv.2104.01097

A general methodology to measure labour market dynamics

Davide Fiaschi^*, Cristina Tealdi

^*Corresponding author for this work

Research output: Working paper

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Abstract

We propose a general methodology to measure labour market dynamics, inspired by the search and matching framework, based on the estimate of the transition rates between labour market states. We show how to estimate instantaneous transition rates starting from discrete time observations provided in longitudinal datasets, allowing for any number of states. We illustrate the potential of such methodology using Italian labour market data. First, we decompose the unemployment rate fluctuations into inflow and outflow driven components; then, we evaluate the impact of the implementation of a labour market reform, which substantially changed the regulations of temporary contracts.

Original language	English
Publisher	arXiv
DOIs	https://doi.org/10.48550/arXiv.2104.01097
Publication status	Published - 2 Apr 2021

Keywords

econ.GN
q-fin.EC
Labour market flows
instantaneous transition rates
Markov process in continuous time
labour market forecasting
policy evaluation

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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KW - labour market forecasting

KW - policy evaluation

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A general methodology to measure labour market dynamics

Abstract

Keywords

UN SDGs

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