A Stock-Flow Accounting Model of the Labor Market: An Application to Israel
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
The paper utilizes a theoretical stock-flow accounting model of the labor market, similar to Blanchard and Diamond (1989). Identifying restrictions are derived from the theoretical model and are imposed on a SVAR system. The estimation allows for decomposing fluctuations to their cyclical and structural components. The model is applied to the Israeli economy. The estimates suggest that non-cyclical factors account for at least half of the decline of the unemployment rate during the period between 2004-Q1, when unemployment peaked at 10.9 percent, and 2011-Q4, when it marked a trough at 5.4 percent; suggesting a shift inward of the Beveridge curve.
Series:
Working Paper No. 2015/058
Subject:
Labor Labor force Labor markets Labor supply Unemployment Unemployment rate
English
Publication Date:
March 16, 2015
ISBN/ISSN:
9781484360569/1018-5941
Stock No:
WPIEA2015058
Pages:
54
Please address any questions about this title to publications@imf.org