Common Cycles in Labour Market Separation Rates for Australian StatesNo 991, Department of Economics - Working Papers Series from The University of Melbourne Abstract: There is a considerable body of evidence showing that it is the inflow into unemployment that drives the unemployment rate up and down and so from a policy point of view an important question is whether or not movements in state inflow reflect the impact of state-specific shocks or common shocks affecting the entire economy This paper reports the results of using principal components analysis to search for a common cycle in time series data for the rate at which people are leaving employment and moving to unemployment in the six states of Australia. It is concluded that there is a common cyclical component to each of the state’s separation rates but that it accounts for only a small part of the total variation we observe in the data set. In addition there are large idiosyncratic variations especially in the case of three of the six states. These findings strengthen the case for regional labour market policy in Australia. Keywords: Unemployment; Cycles; Principal components analysis; Australia (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:mlb:wpaper:991 Access Statistics for this paper More papers in Department of Economics - Working Papers Series from The University of Melbourne Department of Economics, The University of Melbourne, 4th Floor, FBE Building, Level 4, 111 Barry Street. Victoria, 3010, Australia. Contact information at EDIRC. |
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