We investigate the steady decline in aggregate unemployment rates in Korea since the 1960s. We argue that a pronounced decrease in the intensity of reallocation shocks, which resulted in a downward trend in the natural rate of unemployment, has been an important factor in this decline. Our claim is based on a structural search-matching model, the times series of job-separation and job-finding rates, and sectoral-shift measures that we construct from a micro data for the past three decades.
|Number of pages||23|
|Journal||Journal of the Japanese and International Economies|
|Publication status||Published - 2004 Jun|
Bibliographical noteFunding Information:
We thank the ICSEAD for its financial support. The views expressed herein are those of authors and do not necessarily reflect those of the Federal Reserve Bank of Richmond or the Federal Reserve System.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
- Political Science and International Relations