Discussion Paper Details

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Title: Accounting for Mismatch Unemployment

Author(s): Benedikt Herz and Thijs van Rens

Publication Date: June 2018

Keyword(s): job mobility, mismatch, structural unemployment and worker mobility

Programme Area(s): Labour Economics, Macroeconomics and Growth and Monetary Economics and Fluctuations

Abstract: We investigate unemployment due to mismatch in the United States over the past three and a half decades. We propose an accounting framework that allows us to estimate the contribution of each of the frictions that generated labor market mismatch. Barriers to job mobility account for the largest part of mismatch unemployment, with a smaller role for barriers to worker mobility. We find little contribution of wage-setting frictions to mismatch.

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Bibliographic Reference

Herz, B and van Rens, T. 2018. 'Accounting for Mismatch Unemployment'. London, Centre for Economic Policy Research.