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Table 2 Unemployment decomposition

From: The importance of frequency in estimating labour market transition rates

 

Monthly survey

Quarterly survey

 

Original

Corrected

Original

Corrected

  

Continuous

 

Monthly

Weekly

Continuous

 

n m

\({\hat {\lambda }_{m}}\)

n q

\({\hat {n}_{m}}\)

\(\hat {n}_{w}^{\ast }\)

\(\hat {\lambda }_{q}\)

E → U

0.312

0.301

0.412

0.332

0.293

0.247

E → I

-0.001

-0.001

-0.002

-0.004

-0.004

0.001

U → E

0.335

0.340

0.277

0.387

0.442

0.392

U → I

0.105

0.107

0.073

0.109

0.125

0.106

I → E

0.086

0.087

0.062

0.059

0.055

0.097

I → U

0.164

0.166

0.177

0.117

0.090

0.158

  1. Note: n m and n q are calculated directly from CPS from 1976:2 to 2011:6. \(\boldsymbol {\hat {\lambda }_{m}}\) and \(\boldsymbol {\hat {\lambda }_{q}}\) are calculated using equations ( 3 ) and ( 4 ). ∗ Discrete weekly correction calculated \(\boldsymbol {\hat {n}_{w}= p_{q} \mu _{q}^{1/12} p_{q}^{-1}}\) . The unemployment decomposition is based on Shimer ( 2012 ). I report the \(\boldsymbol {\frac {Cov\left (\tilde {u}_{t,i},\tilde {u}^{AB}_{t,i}\right)}{Var\left (\tilde {u}_{t,i}\right)}}\) , normalised to add up to 1.
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