Autore: Borooah, Vani K.
Titolo: A distrobution-sensitive measure of umployment
Periodico: International Center for Economics Research, Torino. ICER - Working papers series
Anno: 1999 - Fascicolo: 12 - Pagina iniziale: 1 - Pagina finale: 9

The measurement of unemployment, like that of poverty, involves two distinct steps: indentification and aggregation. In this process, the issue of identifying the unemployed has received considerable attention but, once they have been identified, the aggregation problem has been addressed by arriving at a unemployment rate through simply counting heads. This, in particular, leads to differences in the unemploymentt experiences of individuals, that underly the unemployment rate, being ignnored. This paper proposes a methodology, based on the measurement of income inequality, for adjusting unemployment rates to make them "distribution-sensitive". Consequently, different levels of social loss will, depending on the distribution of unemployment experiences, be associated with the same value of the conventionally defined unemployment rate. A numerical example illustrates the methodology.




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