IDEAS home Printed from https://ideas.repec.org/a/oup/oxford/v13y1997i3p70-92.html
   My bibliography  Save this article

The Labour Market over the Business Cycle: Can Theory Fit the Facts?

Author

Listed:
  • Millard, Stephen
  • Scott, Andrew
  • Sensier, Marianne

Abstract

We examine the ability of six labor market models to account for the business cycle behavior of UK labor markets when embedded in a stochastic growth model. We assess the models in terms of their ability to mimic general business cycle correlations and volatility, their success at explaining the persistence of labor market fluctuations, and whether they can explain why the growth and speed of adjustment of labor market variables changes between periods of expansions and contractions. The main success of the models is their ability broadly to account for business cycle correlations and comovements and the variations in employment/unemployment growth rates between expansions and contractions. However, there are three main failures: the models tend to produce insufficiently volatile employment and unemployment fluctuations; they tend to produce too strong a correlation between wages and employment; and most of them generate only brief temporary deviations in unemployment in response to shocks rather than the protracted dynamics of the data. Copyright 1997 by Oxford University Press.

Suggested Citation

  • Millard, Stephen & Scott, Andrew & Sensier, Marianne, 1997. "The Labour Market over the Business Cycle: Can Theory Fit the Facts?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 13(3), pages 70-92, Autumn.
    • Handle: RePEc:oup:oxford:v:13:y:1997:i:3:p:70-92
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:oxford:v:13:y:1997:i:3:p:70-92. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/oxrep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.