Duration Dependence and Composition in Unemployment Spells
This article reviews the evidence for duration dependence in job-finding rates and its implications for the unemployment duration distribution. The authors document duration dependence and show that it exists within nearly every demographic subgroup. Then, they examine the implications of duration dependence on unemployment duration, emphasizing that a uniform job-finding rate that does not incorporate duration dependence understates unemployment duration. Finally, they explore a composition-based approach to duration dependence, where they solve for the distribution of preexisting ...
Disability Rate Exceeds Nation's; Problem Is Worse in Rural Areas
More than 4 percent of the people in the District are ?on disability,? receiving Social Security Disability Insurance benefits, vs. 2.6 percent for the rest of the country. Rural counties in the District have higher rates than do metro areas.
Multidimensional Skill Mismatch
What determines the earnings of a worker relative to his peers in the same occupation? What makes a worker fail in one occupation but succeed in another? More broadly, what are the factors that determine the productivity of a worker-occupation match? In this paper, we propose an empirical measure of skill mismatch for a worker-occupation match, which sheds light on these questions. This measure is based on the discrepancy between the portfolio of skills required by an occupation and the portfolio of abilities possessed by a worker for learning those skills. This measure arises naturally in a ...
Long-Term Unemployment: Attached and Mismatched?
In this paper, I quantify the contribution of occupation-specific shocks and skills to unemployment duration and its cyclical dynamics. I quantify specific skills using microdata on wages, estimating occupational switching cost as a function of the occupations' difference in skills. The productivity shocks are consistent with job finding rates by occupation. For the period 1995-2013, the model captures 69.5% of long-term unemployment in the data, while a uniform finding rate delivers only 47.2%. In the Great Recession, the model predicts 72.9% of the long-term unemployment that existed in the ...
The Connection Between Social Security Disability Insurance and High Unemployment
Even as national unemployment has fallen, counties with persistently high unemployment also have more disability.
The Alpha Beta Gamma of the Labor Market
Based on patterns of employment transitions, we identify three different types of workers in the US labor market: α’s β’s and γ’s. Workers of type α make up over half of all workers, are most likely to remain on the same job for more than 2 years and, when they become unemployed, typically find a new job within 1 quarter. Workers of type γ comprise less than one-fifth of workers, have a low probability of staying on the same job for more than 2 years and, when they become unemployed, face a high probability of remaining jobless for more than 1 year. Workers of type β are in ...
Network Search: Climbing the Job Ladder Faster
We introduce an irregular network structure into a model of frictional, on-the-job search in which workers find jobs through their network connections or directly from firms. We show that jobs found through network search have wages that stochastically dominate those found through direct contact. Because we consider irregular networks, heterogeneity in the worker's position within the network leads to heterogeneity in wage and employment dynamics: better connected workers climb the job ladder faster and do not fall off it as far. These workers also pass along higher quality referrals, which ...
\\"Where's the Wage Pressure?\\"
As the unemployment rate declines, many people assume that the average wage in the U.S. will increase. However, the average doesn't move that fast over a single business cycle. And any movement over the long term is more in favor of high-wage earners than low-wage earners.
Safe Occupations Are Growing
Health problems and disability claims have declined in the fastest-growing occupations.
Job searching: some methods yield better results than others
Is one method of searching for a job better than another? Do job seekers change their approach when a recession hits?