You are not currently logged in.
Access JSTOR through your library or other institution:
If You Use a Screen ReaderThis content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Sectoral Shifts and Cyclical Unemployment
David M. Lilien
Journal of Political Economy
Vol. 90, No. 4 (Aug., 1982), pp. 777-793
Published by: The University of Chicago Press
Stable URL: http://www.jstor.org/stable/1831352
Page Count: 17
You can always find the topics here!Topics: Unemployment, Employment, Layoffs, Economic fluctuations, Political economy, Economic growth models, Hiring, Labor demand, Cyclical unemployment, Economic models
Were these topics helpful?See something inaccurate? Let us know!
Select the topics that are inaccurate.
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Preview not available
A substantial fraction of cyclical unemployment is better characterized as fluctuations of the "frictional" or "natural" rate than as deviations from some relatively stable natural rate. Shifts of employment demand between sectors of the economy necessitate continuous labor reallocation. Since it takes time for workers to find new jobs, some unemployment is unavoidable. This paper presents evidence that most of the unemployment fluctuations of the seventies (unlike those in the sixties) were induced by unusual structural shifts within the U.S. economy. Simple time-series models of layoffs and unemployment are constructed that include a measure of structural shifts within the labor market. These models are estimated and a derived natural rate series is constructed.
Journal of Political Economy © 1982 The University of Chicago Press