PUBLICATIONS & REPORTS
PUBLICATIONS & REPORTS
From Kitakyushu to the world: AGI, a research institute that studies Asia's economy and society
Trends in Unemployment Rates in Korea: Search-Matching Model Interpretation
| Author | Yongsung Chang, Jaeryang Nam, Changyong Rhee |
|---|---|
| Date of Publication | 2002. 5 |
| No. | 2002-05 |
| Download | 400KB |
Contents Introduction
We investigate the steady decline in aggregate unemployment rates in Korea since the 1960's. 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 searchmatching model, the times series of job-separation and job-finding rates, and sectoralshift measures that we construct from a micro data for the past three decades.