Citation

Discussion Paper Details

Please find the details for DP9525 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Structural or Cyclical? Unemployment in Latvia Since the 2008-09 Financial Crisis

Author(s): Daria Anosova, Konstantin Sonin, Alf Vanags and Anna Zasova

Publication Date: June 2013

Keyword(s): Beveridge curve, cyclical unemployment, labour market matching and structural unemployment

Programme Area(s): International Macroeconomics, Labour Economics and Public Economics

Abstract: In terms of output decline and increase in unemployment, the economic recession in Latvia that started during the 2008-09 financial crisis was one of the most severe in the world. Using both decomposition of the unemployment rate into structural and cyclical components and Mortensen and Pissarides? search and matching approach, we demonstrate that the changes in unemployment should be attributed primarily to cyclical, rather than structural factors; as of 2013, a large share of Latvian unemployment is still cyclical. Our results provide important implications for anti-crisis policy in Latvia and elsewhere in the world: the surge in unemployment was largely a consequence of Latvia?s austerity policy.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9525

Bibliographic Reference

Anosova, D, Sonin, K, Vanags, A and Zasova, A. 2013. 'Structural or Cyclical? Unemployment in Latvia Since the 2008-09 Financial Crisis'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9525