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Decomposing Beveridge curve dynamics by correlated unobserved components

URN to cite this document:
urn:nbn:de:bvb:355-epub-299279
Klinger, Sabine ; Weber, Enzo
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Date of publication of this fulltext: 12 May 2014 10:17


Abstract

Between 1979 and 2009, the German labour market moved along a Beveridge curve with changing slope that used to shift outwards but shifted inwards after severe labour market reforms had come into force. We analyse these dynamics and focus on the macroeconomic outcome of the reforms. For that purpose, we construct a new empirical model that links equilibrium unemployment theory to a flexible ...

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