Shifting the Beveridge Curve: What Affects Labor Market Matching?
IMF Working Papers, April 12, 2016
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- Shifting the Beveridge Curve: What Affects Labor Market Matching?
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Bibliographic details
- Authors: Elva Bova, João Tovar Jalles, Christina Kolerus
- Published: April 12, 2016
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484326466.001
Overview
- Authors: Elva Bova, João Tovar Jalles, Christina Kolerus
- Date: April 12, 2016
- Scope: Analysis of shifts in the Beveridge curves for 12 OECD countries between 2000Q1 and 2013Q4 and short-run determinants of those shifts using limited-dependent variable models.
Methodology
- Identification of Beveridge curve shifts for 12 OECD countries between 2000Q1 and 2013Q4 using three complementary methodologies.
- Analysis of short-run determinants of shifts via limited-dependent variable models (probit-type approaches referenced).
Key findings
- Labor force growth reduces the likelihood of an outward shift in the Beveridge curve.
- Employment protection legislation reduces the likelihood of an outward shift in the Beveridge curve.
- The matching process is more difficult:
- the higher the share of employees with intermediate levels of education in the labor force,
- when long-term unemployment is more pronounced.
- Passive labor market policies, such as unemployment benefits, render matching significantly more difficult.
- Labor taxation renders matching significantly more difficult.
Policy implications and recommendations
- Active labor market policies can facilitate labor market matching. Examples highlighted:
- incentives for start-up programs,
- job sharing programs.
- Passive labor market policies and labor taxation should be evaluated for their adverse effects on matching efficiency.
Source: Shifting the Beveridge Curve: What Affects Labor Market Matching? — Elva Bova, João Tovar Jalles, Christina Kolerus; April 12, 2016.
Content in this bundle
- _wp1693 - Appendix A