Occupation-industry mismatch in the crosssection and the aggregate

Arbeitspapier

I define occupations that are employed in more industries as "broader" occupations. I study the implications of broadness for mismatch of the unemployed and vacancies across occupations and industries. I empirically find that workers in broader occupations are better insured against industryspecific shocks. A recent literature has found that mismatch did not significantly contribute to the rise in unemployment during the Great Recession. I build a general equilibrium model that uses occupational broadness as a microfoundation of mismatch. The model uncovers a general equilibrium channel that realigns the strong crosssectional effects of mismatch with its missing aggregate impact. I argue that mismatch across occupations and industries cannot significantly contribute to aggregate unemployment fluctuations.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Danmarks Nationalbank Working Papers ; No. 147

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Time Allocation and Labor Supply ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Labor Turnover; Vacancies; Layoffs ; Unemployment: Models, Duration, Incidence, and Job Search
• Subject: Macroeconomics ; labor economics ; unemployment ; mismatch

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Darougheh, Saman
• Event: Veröffentlichung
• (who): Danmarks Nationalbank
• (where): Copenhagen
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/227865
• Last update: 10.03.2025, 11:45 AM CET