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A Stock-Flow Accounting Model of the Labor Market:An Application to Israel

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by Yossi Yakhin & Natalya Presman
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A Stock-Flow Accounting Model of the Labor Market:An Application to Israel by Yossi Yakhin & Natalya Presman

The paper utilizes a theoretical stock-flow accounting model of the labor market, similar to Blanchard and Diamond (1989). Identifying restrictions are derived from the theoretical model and are imposed on a SVAR system. The estimation allows for decomposing fluctuations to their cyclical and structural components. The model is applied to the Israeli economy. The estimates suggest that non-cyclical factors account for at least half of the decline of the unemployment rate during the period between 2004-Q1, when unemployment peaked at 10.9 percent, and 2011-Q4, when it marked a trough at 5.4 percent; suggesting a shift inward of the Beveridge curve.

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Ebook Details
Pages: 54
Size: 3.7 MB
Date published:   2015
ISBN: 9781498374163 (DRM-EPUB)

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Nonfiction > Business & Economics
Nonfiction > Business & Economics > Labor

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