Long‐Term Unemployment and the Great Recession: Evidence from UK Stocks and Flows

Citation

Singleton C (2018) Long‐Term Unemployment and the Great Recession: Evidence from UK Stocks and Flows. Scottish Journal of Political Economy, 65 (2), pp. 105-126. https://doi.org/10.1111/sjpe.12139

Abstract
Long-term unemployment more than doubled during the United Kingdom's Great Recession. Only a small fraction of this persistent increase can be accounted for by the changing composition of unemployment across personal and work history characteristics. Through extending a well-known stocks-flows decomposition of labour market fluctuations, the cyclical behaviour of participation flows can account for over two-thirds of the high level of long-term unemployment following the financial crisis, especially the procyclical flow from unemployment to inactivity. The pattern of these flows and their changing composition suggest a general shift in the labour force attachment of the unemployed during the downturn.

Keywords
Economics and Econometrics; Sociology and Political Science

Journal
Scottish Journal of Political Economy: Volume 65, Issue 2