What Should We Ask of a Candidate? A Contribution to the Discussion on the Unemployment Rate

Authors

  • Rómulo A. Chumacero Universidad de Chile y Banco Central de Chile image/svg+xml

Keywords:

unemployment rate, labor market, Chile, employment surveys, measurement discrepancies, INE

Abstract

This paper presents three exercises in order to evaluate the discrepancies between the unemployment rate estimated by the Department of Economics of the University of Chile and the National Bureau of Statistics (INE). It is shown that the discrepancies cannot be explained by differences on the questions for eliciting information on employment situation. Furthermore, we show that the historical differences among estimators are significant, but more importantly, that the dynamic relation between both rates and the rate of growth of the economy is also very different. Based on this observation and a theoretical model, we show that the unemployment rate reported by the University of Chile is a more useful candidate for characterizing the referred phenomenon.

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Author Biography

Rómulo A. Chumacero, Universidad de Chile y Banco Central de Chile

Departamento de Economía, Universidad de Chile y Gerencia de Investigaciones de Banco Central de Chile

References

Bravo, D., Ramos, J., & Urzúa, S. (1999). Las diferencias en desempleo: INE - U. de Chile [Manuscrito]. Universidad de Chile.

Kydland, F., & Prescott, E. (1982). Time to build and aggregate fluctuations. Econometrica, 50(6), 1345–1370. https://doi.org/10.2307/1913386

Haindl, E. (1986). Trimestralización del producto geográfico bruto por origen y destino. Estudios de Economía, 13(1), 119–189.

Hansen, G. (1985). Indivisible labor and the business cycle. Journal of Monetary Economics, 16(3), 309–327. https://doi.org/10.1016/0304-3932(85)90039-x

Paredes, R., & Ruiz-Tagle, J. (1998). ¿Mayor y permanente desempleo en Chile? Taller de Coyuntura, Universidad de Chile.

Rogerson, R. (1988). Indivisible labor, lotteries and equilibrium. Journal of Monetary Economics, 21(1), 3–16. https://doi.org/10.1016/0304-3932(88)90042-6

Silverman, B. (1986). Density estimation for statistics and data analysis. Chapman & Hall.

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Published

2000-10-31

How to Cite

Chumacero, R. A. (2000). What Should We Ask of a Candidate? A Contribution to the Discussion on the Unemployment Rate. Economic Analysis Review, 15(2), 69–87. Retrieved from https://www.rae-ear.org/index.php/rae/article/view/104

Issue

Vol. 15 No. 2 (2000)

Section

Articles

License

Copyright (c) 2000 Rómulo A. Chumacero

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

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