TY  - RPRT
        AU  - Bachmann, Ronald
AU  - Sinning, Mathias
        TI  - Decomposing the Ins and Outs of Cyclical Unemployment
        PY  - 2012/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6362
        UR  - https://www.iza.org/index.php/publications/dp6362
        AB  - This paper analyzes the contribution of the socioeconomic and demographic composition of the pool of employed and unemployed individuals to the dynamics of the labor market in different phases of the business cycle. Using individual level data from the Current Population Survey (CPS), we decompose differences in employment status transition rates between economic upswings and downturns into composition effects and behavioral effects. We find that overall composition effects play a minor role for the cyclicality of the unemployment outflow rate, although the contribution of the duration of unemployment is significant. In contrast, composition effects dampen the cyclicality of the unemployment inflow rate considerably. We further observe that the initially positive contribution of composition effects to a higher unemployment outflow rate turns negative over the course of the recession.
        KW  - unemployment duration
KW  - gross worker flows
KW  - decomposition analysis
KW  - Blinder-Oaxaca
        ER  -