Labor market flows: A descriptive analysis

Abstract

Transition Probability matrix among labor states has been constructed from the information about the status of hiring and firing flows (employed, unemployed, inactive), in two periods of time. This matrix shows the average of probability (transition rate) an individual has fro changing from one state to another state in the following period. The usefulness of this approach allows a  dynamic analysis of how entrance and leaving flows of each labor state affects employment, unemployment and inactivity. This approach becomes supplementary to the work market analysis based on population stoci statistics (population in an age to work employed, unemployed, and inactive population) and (unemployment, participation, or occupation) rate which are usually carried out