Underestimated or Overestimated: Matching Funtion Elasticities Biased Due to Worker Inflows and Outflows

• Autorzy: Ewa Gałecka-Burdziak
• Języki publikacji: EN

Abstrakty

EN

Matching function elasticities are biased, that is, underestimated or overestimated, if inflows and outflows of job seekers are omitted. I analyse mathematically the direction of this bias and estimate parameters for random, stock-flow and job queuing models, adjusted econometrically for the temporal aggregation bias in the data. I analyse various sets of endogenous and exogenous variables from registered unemployment data in Poland. Estimates show that unemployment affects matching more than discouragement, and that unemployment stock elasticity is underestimated if discouraged workers are neglected. (original abstract)

Słowa kluczowe

EN

Labour market; Econometric modeling; Unemployment; Aggregation bias

PL

Rynek pracy; Modelowanie ekonometryczne; Bezrobocie; Obciążenie agregacyjne

• Czasopismo: Ekonomia / Uniwersytet Warszawski
• Rocznik: 2016
• Numer: nr 47
• Strony: 7--21

Twórcy

autor

Ewa Gałecka-Burdziak

• Warsaw School of Economics, Poland

Bibliografia

• Antczak, Elżbieta, Ewa Gałecka-Burdziak, and Robert Pater. 2016. "Spatial labour market matching." Collegium of Economic Analysis Working Papers 9.
• Blanchard, Olivier and Peter Diamond. 1989. "The Beveridge Curve". Brookings Papers on Economic Activity 0:1: 1-76.
• Blanchard, Olivier and Peter Diamond. 1994. "Ranking, Unemployment Duration, and Wages." Review of Economic Studies 61 (3): 417-434.
• Broersma, Lourens and Jan van Ours. 1998. "Job Searchers, Job Matches and the Elasticity of Matching." Open Access publications from Tilburg University, no. urn: nbn: nl: ui: 12-80319.
• Coles, Melvyn and Barbara Petrongolo. 2008. "A Test Between Stock-Flow Matching and the Random Matching Function Approach." International Economic Review 49 (4): 1113-1141.
• Coles, Melvyn and Eric Smith. 1998. "Marketplace and Matching." International Economic Review 39 (1): 239-254.
• Galuščák, Kamil and Daniel Münich. 2005. "Structural and Cyclical Unemployment: What Can We Derive from the Matching Function? " Czech National Bank Working Paper Series 2.
• Gałecka-Burdziak, Ewa. 2016. "Randomness or stock-flow: Which mechanism describes labour market matching in Poland? " Collegium of Economic Analysis Working Papers 5.
• Gong, Xiaodong. 2010. "The Added Worker Effect and the Discouraged Worker Effect for Married Women in Australia." IZA DP No. 4816.
• Gregg, Paul and Barbara Petrongolo. 2005. "Stock-flow matching and the performance of the labor market." European Economic Review 49: 1987- 2011.
• Long, Clarence. 1953. "Impact of effective demand on the labor supply". American Economic Review, Paper and Proceedings 43: 458-467.
• Petrongolo, Barbara and Christopher Pissarides. 2001. "Looking into the Black Box: A Survey of the Matching Function." Journal of Economic Literature vol. XXXIX (June): 390-431.
• Roszkowska, Sylwia. 2009. "Aggregate Matching Function. The Case of Poland." Central European Journal of Economic Modelling and Econometrics 1 (2): 157-177.
• Shapiro, Carl and Joseph Stiglitz. 1984. "Equilibrium Unemployment as a Worker Discipline Device." American Economic Review 74 (3): 433-444.

Identyfikatory

DOI

10.17451/eko/47/2016/229