Cyclical Flows in Australian Labour Markets

14 Pages Posted: 17 Aug 2010

See all articles by Natalia Ponomareva

Natalia Ponomareva

Macquarie University - Division of Economic and Financial Studies; Macquarie University, Macquarie Business School

Jeffrey Sheen

Macquarie University; Financial Research Network (FIRN); Macquarie University, Macquarie Business School

Multiple version iconThere are 2 versions of this paper

Abstract

Using a four-state model, we show that Australian labour markets exhibited more mobility after 1980, but most gains occurred before 1993. We find large and significant procyclical effects in the transition probabilities from unemployment to jobs, which contribute significantly to the variations of unemployment. Transitions from jobs to unemployment are countercyclical, but the effects are small and in most cases insignificant. Although job-losing and job-finding both matter for the evolution of unemployment over the whole business cycle, job-finding has become more important in recent years. During recessions, job-finding is a bigger issue. Each transition probability explains only a small proportion of participation rates.

Suggested Citation

Ponomareva, Natalia and Sheen, Jeffrey, Cyclical Flows in Australian Labour Markets. Economic Record, Vol. 86, Issue s1, pp. 35-48, September 2010. Available at SSRN: https://ssrn.com/abstract=1660028 or http://dx.doi.org/10.1111/j.1475-4932.2010.00658.x

Natalia Ponomareva (Contact Author)

Macquarie University - Division of Economic and Financial Studies ( email )

United States

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

Jeffrey Sheen

Macquarie University ( email )

Department of Economics
Macquarie University
Sydney, NSW 2109
Australia
+61 2 9850 7287 (Phone)
+61 2 9850 8324 (Fax)

Financial Research Network (FIRN) ( email )

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

Register to save articles to
your library

Register

Paper statistics

Downloads
2
Abstract Views
246
PlumX Metrics