Labor Force Status Dynamics in the German Labor Market-Individual Heterogeneity and Cyclical Sensitivity

@inproceedings{Kluve2006LaborFS,
  title={Labor Force Status Dynamics in the German Labor Market-Individual Heterogeneity and Cyclical Sensitivity},
  author={Jochen Kluve and Sandra Schaff},
  year={2006}
}
The aggregate average unemployment rate in a given country is essentially the result of individual workers’ transitions between the three core labor force states, employment, unemployment, and inactivity. The dynamics of these transitions depend both, on individual duration in a particular state and the transition probabilities between states. Individual transitions, in turn, depend on observable and unobserved factors. Simultaneously, person-specifi c dynamics may be infl uenced by swings of… CONTINUE READING

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