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The Cyclicality of the Separation and Job Finding Rates in France

Author

Listed:
  • Hairault, Jean-Olivier

    (University of Paris 1 Panthéon-Sorbonne)

  • Le Barbanchon, Thomas

    (Bocconi University)

  • Sopraseuth, Thepthida

    (University of Cergy-Pontoise)

Abstract
In this paper, we aim to shed light on the relative contribution of the separation and job finding rates to French unemployment at business cycle frequencies by using administrative data on registered unemployment and labor force surveys. We first investigate the fluctuations in steady state unemployment, and then in current unemployment in order to take into account the unemployment deviations from equilibrium. Our results show the dominant role of the job finding rate in accounting for French unemployment fluctuations. The contribution of the job finding rate amounts to about two-thirds of the unemployment dynamics. With the two data sets, we find that both rates contributed to unemployment fluctuations during the nineties, while the job finding rate has been more significant in the last decade. In particular, the last business cycle episodes, including the last recession, exacerbate the role of the job finding rate.

Suggested Citation

  • Hairault, Jean-Olivier & Le Barbanchon, Thomas & Sopraseuth, Thepthida, 2012. "The Cyclicality of the Separation and Job Finding Rates in France," IZA Discussion Papers 6906, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6906
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    References listed on IDEAS

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    More about this item

    Keywords

    job finding; job separation; unemployment variability; worker flows;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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