Working Paper: NBER ID: w2652
Authors: Harry J. Holzer
Abstract: This paper uses data on unemployment rates and job vacancy rates to measure structural/frictional and demand-deficient components of unemployment rate differences across local labor markets. Data on occupational and industrial distributions of unemployed workers and vacant jobs, as well as on local wages, recent sales growth, Unemployment Insurance, and demographics are then used to help account for these components of unemployment across local areas.
Keywords: unemployment; local labor markets; job vacancies; structural unemployment; frictional unemployment; demand-deficient unemployment
JEL Codes: J64; J63
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| demand shifts (J20) | demand component of unemployment (J64) |
| unemployment insurance benefit-to-wage ratio (J65) | structural and frictional unemployment (J64) |
| proportion of labor force with college degrees (J21) | structural and frictional unemployment (J64) |
| median age of labor force (J21) | unemployment rates (J64) |
| indices of occupational and industrial imbalance (J69) | unemployment rates (J64) |