Template-Type: ReDIF-Paper 1.0
Author-Name: Maurizio Baussola
Author-X-Name-First: Maurizio
Author-X-Name-Last: Baussola
Author-Email: maurizio.baussola@unicatt.it
Author-Workplace-Name: DISCE, Università Cattolica
Author-Name: Chiara Mussida 
Author-X-Name-First: Chiara
Author-X-Name-Last: Mussida
Author-Email: chiara.mussida@unicatt.it
Author-Workplace-Name: DISCE, Università Cattolica
Title: The natural rate of unemployment and the unemployment gender gap
Abstract: Recent labour market developments include an increase in labour market mismatches, in that high 
unemployment rates coexist with significant levels of vacancies. This pattern is particularly evident in the 
US economy, but is also significant within the European Union; it implies that the natural rate of unemployment 
may rise significantly, thus suggesting that even if policies aimed at reducing it are implemented, the 
unemployment rate may remain steady if not increase. An important factor possibly influencing such an increase is
related to the gender differential in employment opportunities. This is particularly relevant wherever such a 
differential represents a structural characteristic of the labour market, as in the case of Italy. 
The present work focuses on this issue and presents a methodology to decompose the natural rate of unemployment 
by gender, thus defining it in terms of equilibrium labour market flows between the aggregate states of the labour
market (Employment, Unemployment, Non Labour Force). In addition, we propose estimates of the determinants of 
the unemployment gender gap, in order to pinpoint the relative roles of individual characteristics and 
structural factors in determining this difference.
Length: 27 pages
Creation-Date: 2011-12
Publication-Status: unpublished
File-URL: http://www.unicatt.it/dipartimenti/DISES/allegati/dises1180.pdf
File-Format: Application/pdf
File-Function: First version, 2011
Number: dises1180
Classification-JEL: C21, C41, J16, J31, J71
Keywords: unemployment gender gap, differentials, multinomial models, transition probability matrix.
Handle: RePEc:ctc:serie2:dises1180