This study develops a framework for the analysis of labor market dynamics based upon a new dynamic flow analysis instead of the conventional labor stock data. To identify the dynamic elements in the labor market, information on flows is needed. Flow data that have become available in recent years--in this case on the United States and Germany--show that an enormous amount of labor market mobility is occurring every month. Schettkat analyzes two of the world's most dynamic economies and labor markets--showing that the unemployed are far from being a fixed bloc but are rather a changing population responding greatly to structural alterations.
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