Working Paper: CEPR ID: DP12972
Authors: Thijs van Rens; Benedikt Herz
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.
Keywords: mismatch; structural unemployment; worker mobility; job mobility
JEL Codes: E24; J61; J62
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Barriers to job mobility (J62) | Mismatch unemployment (J64) |
| Barriers to worker mobility (J62) | Mismatch unemployment (J64) |
| Wage-setting frictions (J31) | Mismatch unemployment (J64) |
| Overall unemployment rates (J64) | Mismatch unemployment (J64) |