Summary
This paper reestimates the UV curve for the Netherlands 1955-1980 and challenges the conclusions based on previous specifications of the curve. The specification finally chosen solves not only the technical problems of autocorrelation and the like, but also yields insight into the origins of the upward shift of the UV curve. The majority of the factors responsible for the rise in unemployment due to labour market imperfections bears a clearly cyclical character. The qualification of this type of unemployment as structural seems therefore incorrect and misleads policy intentions towards inefficient micro-economic labour market policy.
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I acknowledge the stimulating comments in the critical remarks of S. Kuipers, Th. van de Klundert and J. Muysken and the statistical assistance of Karl Driessen. The very start of this project was made possible with the financial assistance of the National Program for Labour Market Research (NPAO-ZWO No. 45–39).
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De Neubourg, C. The origin and insignificance of labour market imperfections in the Netherlands: Another note on the specification of the UV curve 1955–1980. De Economist 133, 64–77 (1985). https://doi.org/10.1007/BF01675962
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DOI: https://doi.org/10.1007/BF01675962