Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282849 
Authors: 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 16722
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We extend Nakamura et al. (2019, 2020)'s approach of using the publicly available microdata files of the Labour Force Survey (LFS) to construct worker transition rates across employment, unemployment, and inactivity. Our approach involves estimating and applying a scaling factor that has been proposed in earlier research as a way of capturing the relative intensity of job search from inactivity compared to unemployment. This factor provides enough structure to prevent arbitrary splitting of unemployment outflows between employment and inactivity. In turn, the estimated job search factor can be used in a few simple step-by-step instructions applied to the LFS public files to assess near real-time labor market conditions in Canada. An analysis of the recent dynamics of worker flows illustrating the practicality of our approach highlights that transition rates: (a) from employment to unemployment have fallen over time (b) from unemployment to employment were unusually high during the pandemic and (c) have regional differences.
Subjects: 
employment
unemployment
labor force participation
gross worker flows
JEL: 
E24
J21
J63
Document Type: 
Working Paper

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