A man crossing the road.
Economics
Research insight
May 13, 2021

How the ins and outs shape differently the U.S. unemployment over time and across frequencies

Abstract:

Although the U.S. case has been studied extensively, the importance of job finding and separation rates to unemployment variability remains unsettled. The aim of this paper is to contribute to this debate by adopting a novel lens, wavelet analysis. We resort to wavelet analysis to unveil time- and frequency-varying features regarding the contribution of the job finding and job separation rates for the U.S. unemployment rate dynamics. Drawing on this approach, we are able to reconcile some apparently contradictory findings reported in previous literature. We find that the job finding rate is more influential for the overall unemployment behaviour but the job separation rate also plays a critical role, especially during recessions. In particular, the job separation rate accounts for, on average, 53 percent of the unemployment variability at short-run fluctuations during recessions, in sharp contrast with an overall contribution of 21 percent over time and across frequencies.


Authors: Pedro Portugal, António Rua

You can find the research article here.


Pedro Portugal & António Rua

Pedro Portugal & António Rua

Website
8. Decent work and economic growth
Economics
Research insight
SDG
16

Diffusion of Rival Information in the Field

Under the theme of Economic Development in Africa, the NOVAFRICA@Nova SBE seminar series hosts a variety of international speakers. This seminar invited Inês Vilela, Royal University of London (Alumna Nova SBE).

Learn more
Economics
Opinion Article
SDG
17
8

The Impact of Globalization on Inequality

Since the European discoveries, several waves of globalization have shaped the way we live today. This article explores actions and effects of globalization.

Learn more
Economics
Research insight
SDG
5
10
16

Political voice and pro-sociality: evidence from a lab-in-the-field experiment in Uganda

Under the theme of Economic Development in Africa, the NOVAFRICA@Nova SBE seminar series hosts a variety of international speakers. This seminar invited Ana Garcia, Nova SBE.

Learn more