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Tuesday, November 03, 2015

'Exploring Differences in Unemployment Risk'

No surprises here, but nice to see this quantified:

Exploring Differences in Unemployment Risk, by Benjamin Pugsley, Rachel Schuh, and Ayşegül Şahin: The risk of becoming unemployed varies substantially across different groups within the labor market. Although the “headline” unemployment rate draws the most attention from the news media and policymakers, there is rich heterogeneity underlying this overall measure. We delve into the data to describe how unemployment and job loss risk vary with demographics (gender, age, and race), skill (educational attainment), and job characteristics (occupation and earnings).
Differences in unemployment across these groups are long-standing. The table below shows the average unemployment rate for various demographic, skill, and occupation groups in the labor force since 1976. Workers who are younger or less educated, workers in manual occupations, and workers who identify as Black or Hispanic experienced significantly higher average unemployment rates than college educated and older workers. ...

After presenting and discussing the evidence, they conclude:

These patterns ... have important implications for policy. Aggregate stabilization policies that aim for maximum employment would be especially helpful for demographic groups that face a higher and more cyclical risk of unemployment.

    Posted by on Tuesday, November 3, 2015 at 03:33 AM in Economics, Unemployment | Permalink  Comments (0)


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