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Matching and decomposing unemployment in a segmented labor market

Year: 2025

Type: book-chapter

Abstract: This article proposes an original analytical framework to study unemployment in segmented labor markets, emphasizing both intra-segment frictions and intersegmental mismatches. It introduces two key indicators to measure matching inefficiency and imbalance between jobseekers and vacancies. The model decomposes unemployment into three components: job shortage, frictional, and mismatch unemployment. Using a modified matching function and an empirical simulation, the study shows how inefficient allocation across segments sustains unemployment. Results highlight that enhancing intra-segment efficiency alone is insufficient; reducing structural mismatches is equally essential. This framework provides practical insights for labor policies focused on mobility, skill alignment, and improved distribution of employment opportunities.

Source: OPUS-Publikationsserver der Hochschule Hof

DOI: 10.57944/1051-242

Author: Bedhiaf, Ahmed

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities

Open Access status: green

OpenAlex ID: W7127958391

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