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Understanding unemployment flows

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  • Ekkehard Ernst
  • Uma Rani

Abstract

This article reviews the current state of research on unemployment dynamics in macroeconomic models. In particular, it discusses the increasingly widespread use of the labour-market flow approach as implemented via a search and matching process and presents main policy considerations that arise from this approach related to unemployment benefit systems and employment protection. It reviews the implications of the labour-flow approach for dynamic properties of macroeconomic models and discusses policy implications for macroeconomic and labour-market policies. Finally, it presents new evidence on the effectiveness of policies to influence unemployment in- and outflows. Copyright 2011, Oxford University Press.

Suggested Citation

  • Ekkehard Ernst & Uma Rani, 2011. "Understanding unemployment flows," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 27(2), pages 268-294.
    • Handle: RePEc:oup:oxford:v:27:y:2011:i:2:p:268-294
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    Cited by:

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    3. Verónica Escudero, 2018. "Are active labour market policies effective in activating and integrating low-skilled individuals? An international comparison," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-26, December.
    4. Mr. Ralph Chami & Ernst Ekkehard & Connel Fullenkamp & Anne Oeking, 2018. "Are Remittances Good for Labor Markets in LICs, MICs and Fragile States?," IMF Working Papers 2018/102, International Monetary Fund.
    5. Ekkehard Ernst, 2019. "Finance and Jobs: How Financial Markets and Prudential Regulation Shape Unemployment Dynamics," JRFM, MDPI, vol. 12(1), pages 1-30, January.
    6. Ekkehard Ernst & Faten Saliba, 2018. "Are House Prices Responsible for Unemployment Persistence?," Open Economies Review, Springer, vol. 29(4), pages 795-833, September.

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