Understanding Recent Increases in Unemployment Duration

Content Provider	Semantic Scholar
Author	Foote, Chris Ryan, Richard M.
Copyright Year	2011
Abstract	A central question in today’s policy debate concerns the labor market: Does the low rate of job-fnding and the correspondingly high unemployment rate refect weak aggregate demand or some other factor, such as skills mismatch, expanded unemployment benefts, or the depressing e ect of falling house prices on the mobility of homeowners? We shed some light on this issue by investigating the unemployment durations of workers in the monthly Current Population Survey (CPS). Specifcally, we regress worker-level unemployment durations on explanatory variables that refect the worker’s demographics, his workplace skills, and the strength of his home-state’s housing market. The worker’s skills are inferred using his education level and previous occupation, while the state-level housing market is allowed to a ect the unemployment durations of renters and homeowners di erently. We also account for the worker’s reason for unemployment, which helps determine whether the worker receives unemployment insurance. We have three main fndings:
File Format	PDF HTM / HTML
Alternate Webpage(s)	https://www.federalreserve.gov/monetarypolicy/files/FOMC20110116memo01.pdf
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article