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Artículo en revista académica

Unenployment, participation and worker flows over the life cycle

  • person Alexandre Janiak

    Sekyu Choi, Benjamín Villena-Roldán

  • class The Economic Journal, Volume125, Issue 589, December 2015 Pages 1705-1733

Abstract: We estimate life-cycle transition probabilities among employment, unemployment and inactivity for US workers. We assess the importance of each worker flow to account for participation and unemployment rates over the life cycle. We find that inactivity exit and entry matter but the empirically relevant margins defy conventional wisdom: high youth unemployment is due to high employment exit probabilities, while low labour force entry probabilities substantially account for low participation and unemployment among older workers. Our results remain intact under several forms of heterogeneity, time-aggregation bias and misclassification errors.