TY  - RPRT
        AU  - Fiaschi, Davide
AU  - Tealdi, Cristina
        TI  - A General Methodology to Measure Labour Market Dynamics
        PY  - 2021/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14254
        UR  - https://www.iza.org/publications/dp14254
        AB  - We propose a general methodology to measure labour market dynamics, inspired by the search and matching framework, based on the estimate of the transition rates between labour market states. We show how to estimate instantaneous transition rates starting from discrete time observations provided in longitudinal datasets, allowing for any number of states. We illustrate the potential of such methodology using Italian labour market data. First, we decompose the unemployment rate fluctuations into inflow and outflow driven components; then, we evaluate the impact of the implementation of a labour market reform, which substantially changed the regulations of temporary contracts.
        KW  - Markov process in continuous time
KW  - instantaneous transition rates
KW  - labour market flows
KW  - labour market forecasting
KW  - policy evaluation
        ER  -