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| Noritaka Kudoh and Hiroaki Miyamoto |
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| ''Time aggregation and unemployment volatility'' |
| ( 2023, Vol. 43 No.2 ) |
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| This paper explores the importance of time aggregation for labor market fluctuations. Instead of correcting time aggregation bias in the data, we develop a simple search-matching model in which some individuals lose and find a job within a period to artificially generate the bias. The magnitude of time aggregation bias is highly procyclical. An increase in the degree of time aggregation bias is associated with a significantly lower unemployment volatility. |
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| Keywords: worker flows, time aggregation bias, unemployment volatility. |
JEL: J6 - Mobility, Unemployment, and Vacancies: General
E3 - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) |
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| Manuscript Received : Feb 27 2023 | | Manuscript Accepted : Jun 30 2023 |
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