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Constructing the job‐finding rate and separation rate of Hong Kong labour market
Author(s) -
Wang Bin,
Kwan Yum K.
Publication year - 2021
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/1468-0106.12333
Subject(s) - separation (statistics) , unemployment rate , economics , aggregate (composite) , variance (accounting) , labour economics , unemployment , econometrics , mathematics , statistics , macroeconomics , materials science , accounting , composite material
This paper constructs two essential time series of the aggregate labour market in Hong Kong: the job‐finding rate and the separation rate. The average job‐finding rate per month is 27.54% while the average separation rate per month is 1.29%. These numbers are similar to those for Nordic and Anglo‐Saxon countries. Variance decomposition shows that the separation rate contributes to more than half the variation of the unemployment rate.