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Sectoral shifts and unemployment persistence

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  • Kurt Kratena

Abstract

This paper deals with possible explanations of unemployment persistence within a sectoral approach to the Austrian labour market. First the concept of unemployment persistence is specified in terms of the time series properties of the unemployment rate. Sectoral job gains and job losses form the labour market flows in this approach. The standard matching model is replaced then by a model of the competition between the unemployed and new entrants in the labour market for new jobs as an 'adding up' demand system of the AIDS type. The estimations of different system specifications indicate, that the sectoral structure of job gains plays a role in the competition mechanism between unemployed workers and new entrants.

Suggested Citation

  • Kurt Kratena, 2000. "Sectoral shifts and unemployment persistence," Applied Economics, Taylor & Francis Journals, vol. 32(10), pages 1233-1240.
    • Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1233-1240
    DOI: 10.1080/000368400404380
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    References listed on IDEAS

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    1. O. Mikhail & C. J. Eberwein & J. Handa, 2006. "Estimating persistence in Canadian unemployment: evidence from a Bayesian ARFIMA," Applied Economics, Taylor & Francis Journals, vol. 38(15), pages 1809-1819.

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