Adjusting the Gross Changes Data: Implications for Labor Market Dynamics

39 Pages Posted: 28 Jun 2001 Last revised: 28 Dec 2001

See all articles by James M. Poterba

James M. Poterba

National Bureau of Economic Research (NBER); Massachusetts Institute of Technology (MIT) - Department of Economics

Lawrence H. Summers

Harvard University; National Bureau of Economic Research (NBER); Harvard University - Harvard Kennedy School (HKS)

Date Written: August 1984

Abstract

This paper develops a procedure for adjusting the Current Population Survey gross changes data for the effects of reporting errors. The corrected data suggest that the labor market is much less dynamic than has frequently been suggested. Conventional measures sy understate the duration of unemployment by as much as eighty percent and overstate the extent of movement into and out ofthe labor force by several hundred percent. The adjusted data also throw demographic differences in patterns of labor market dynamics into sharp relief.

Suggested Citation

Poterba, James M. and Summers, Lawrence H., Adjusting the Gross Changes Data: Implications for Labor Market Dynamics (August 1984). NBER Working Paper No. w1436. Available at SSRN: https://ssrn.com/abstract=275418

James M. Poterba (Contact Author)

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Lawrence H. Summers

Harvard University ( email )

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National Bureau of Economic Research (NBER)

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Harvard University - Harvard Kennedy School (HKS) ( email )

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