6533b851fe1ef96bd12a8d9c

RESEARCH PRODUCT

Unemployment Flows in Finland, 1969-95: A Time Series Analysis

Jaakko PehkonenTor Eriksson

subject

Labour economicsmedia_common.quotation_subjectGeography Planning and DevelopmentInflowEmigrationLong periodUnemploymentcardiovascular systemEconomicsOutflowTime seriesBeneficial effectsDemographymedia_commonDemographic structure

description

We adopt a flow approach to analyse Finnish unemployment experience during the last three decades. In addition to data on short-term and total outflow and inflow rates from a relatively long period beginning in 1969, we also have data on duration-specific outflow rates for the period 1984 I–96 II which encompasses the spectacular increase in unemployment in the early nineties. The empirical study shows that both the inflow and the outflow is mainly driven by variation in job opportunities. For a given vacancy-unemployment ratio, the outflow rate has fallen because of changes in unemployment compensation, demographic structure and emigration. The outflow has been only marginally affected by long-term unemployment. The results indicate that the beneficial effects of labour market policies on long-term unemployment are to some extent counteracted by substitution effects.

yearjournalcountryeditionlanguage
1998-09-01Labour
https://doi.org/10.1111/1467-9914.00080