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The Beveridge Curve Across US States: New Insights From a Pairwise Approach

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  • Mark J. Holmes
  • Jesús Otero
Abstract
This paper offers new insights into Beveridge curve analysis by modelling the unemployment–vacancy rate relationship at state‐level within a pairwise environment in which the unemployment rate in one state is inversely related to the vacancy rate in another. We find that Beveridge curve shifting, or matching efficiency, is driven by factors that include distance between states, the labour force participation rate, homeownership and the relative affordability of housing between states. A pairwise recursive analysis points to a decrease in matching efficiency in the period that followed the Great Recession.

Suggested Citation

  • Mark J. Holmes & Jesús Otero, 2020. "The Beveridge Curve Across US States: New Insights From a Pairwise Approach," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(2), pages 405-424, April.
    • Handle: RePEc:bla:obuest:v:82:y:2020:i:2:p:405-424
    DOI: 10.1111/obes.12337
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    Cited by:

    1. Mark J. Holmes & Jesús Otero, 2022. "The wage curve within and across regions: new insights from a pairwise view of US states," Empirical Economics, Springer, vol. 62(5), pages 2069-2089, May.

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