On the Role of Nonparticipation Turnover in European Unemployment

Forskningsenhed: CEBR


Abstract:
In this research project we aim to undertand the role of nonparticipation turnover in the dynamics of unempoymeny of a large set of European countries, including Denmark. To achieve that goal, first, we want to investigate wheter the patterns of nonparticipation turnover documented by Elsby et al. (2015) in the US are similiar in European countries. Second, we want to identify which policy and institutional factors account for the differences in the composition of unemployment dynamics across the countries in our sample. By comparing countries with very different labor market institutions andpolicies relative to the U.S., but also between them (e.g. Nordic vs. Southern European countries), we expect to offer a new perspective oin the role of institutions and policies in shaping the cyclical response of unemployment. We expect to make an important contribution to the literature, since so far the large cross-country empirical literature on unemployment dynamics has ignored the role of nonparticipation turnover (see Blanchard and Portugal (2001) Jolivet et al. (2006), Elsby et al. (2013) and Murtin and Robind (2018)

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