The Cyclicality of the Separation and Job Finding Rates in France

30 Pages Posted: 20 Oct 2012

See all articles by Jean-Olivier Hairault

Jean-Olivier Hairault

Université Paris I Pantheon-Sorbonne; IZA Institute of Labor Economics

Thomas Le Barbanchon

Bocconi university; Centre for Economic Policy Research (CEPR)

Thepthida Sopraseuth

Université du Maine; University of Angers - Centre d'Etudes Prospectives d'Economie Mathematique Appliquees a la Planification (CEPREMAP)

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.

Keywords: unemployment variability, job separation, job finding, worker flows

JEL Classification: E24, J6

Suggested Citation

Hairault, Jean-Olivier and Le Barbanchon, Thomas and Sopraseuth, Thepthida, The Cyclicality of the Separation and Job Finding Rates in France. IZA Discussion Paper No. 6906. Available at SSRN: https://ssrn.com/abstract=2164635

Jean-Olivier Hairault (Contact Author)

Université Paris I Pantheon-Sorbonne ( email )

12, place du Panthéon
Paris, IL
France

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Thomas Le Barbanchon

Bocconi university ( email )

Via Sarfatti, 25
Milan, MI 20136
Italy

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Thepthida Sopraseuth

Université du Maine ( email )

72085 Le Mans Cedex 9
France

University of Angers - Centre d'Etudes Prospectives d'Economie Mathematique Appliquees a la Planification (CEPREMAP)

Ecole Normale Superieure
48 boulevard Jourdan
75014 Paris
France

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