Working paper: Occupation-industry mismatch in the cross-section and the aggregate

Working paper - November 2019 - No. 147

Authors Abadi, Saman Jonathan Darougheh Mohammad (Danmarks Nationalbank)
Subject Economic activity and employment; International Economy; Models
Type Working paper
Year 2019
Published 22 November 2019
I define occupations that are employed in more industries as “broader” occupations. I study the implications of broadness for mismatch of the unemployed and vacancies across occupations and industries. I empirically find that workers in broader occupations are better insured against industry-specific shocks. I build a general equilibrium model that uses occupational broadness as a microfoundation of mismatch. The model matches the empirical findings but predicts that mismatch cannot significantly contribute to aggregate fluctuations in the unemployment rate.