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How Segmented are Skilled and Unskilled Labour Markets: the Case of Beveridge Curves
Author(s) -
Song Lei Lei,
Webster Elizabeth
Publication year - 2003
Publication title -
australian economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 15
eISSN - 1467-8454
pISSN - 0004-900X
DOI - 10.1111/1467-8454.00202
Subject(s) - beveridge curve , economics , labour economics , matching (statistics) , unemployment , unemployment rate , turnover , macroeconomics , statistics , mathematics , management
This paper tests whether there is evidence that two distinct Beveridge curves for the skilled and unskilled aggregate markets exist. The results support the hypothesis and specifically find that the unskilled labour segment is less efficient at matching workers with jobs, primarily due to higher labour turnover rates. Higher turnover rates can be indicative of a poor match between employers’ and jobseekers’ expectations. The results also indicate that other shift variables, such as the replacement rate, the incidence of long‐term unemployment, the immigration rate and the market circumstances in the skilled segment were only important for the unskilled segment.