Why did the average duration of unemployment become so much longer?
By: Toshihiko Mukoyama, Ayşegül Şahin.
Contributors: Şahin, Ayşegül, 1972-; Federal Reserve Bank of New York.
Series: Staff reports ;; no. 194; Staff reports (Federal Reserve Bank of New York : Online) ;; no. 194.
Publisher: Federal Reserve Bank of New York
Published: 2004
Place of publication: [New York, N.Y.]
Language: eng
Format: Electronic resource
Subjects: Unemployment -- United States -- Econometric models.; Wages -- United States -- Econometric models.
Description: "This paper examines the causes of the observed increase in the average duration of unemployment over the past thirty years.  First we analyze whether changes in the demographic composition of the U.S.  labor force, particularly the age and gender composition, can explain this increase.  We then consider the contribution of institutional changes, such as the change in the generosity and coverage of unemployment insurance.  We find that changes in the composition of the labor force and institutional changes can only partially account for the longer duration of unemployment.  We construct a job search model and calibrate it to U.S.  data.  The results indicate that more than 70 percent of the increase in the duration of unemployment over the past thirty years can be attributed to an increase in within-group wage inequality"--Federal Reserve Bank of New York web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 1/12/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.