In our analysis of the drivers of the Beveridge curve shifts, we use data on sectoral, skill and gender (un- employment figun- employment
I also think that it's too early and unwise to entirely discount structural factors at this point.In his response to the Brookings paper, economist Larry Katz noted that sectoral or skills mismatch might be more of a problem than industry outflow rates indicate.
However, since sectoral and skill mismatches are most likely to be a drag on growth, this means that mismatches are likely negatively related to GDP growth and are, thus, likely to bias downwards the estimates in Okun's Law relation.
These include controlling for sectoral shifts/deindustrialization, skill-biased technical change, social preferences in favor of greater inequality, the role of the finance sector, rising levels of formal schooling, and even the endogeneity of the union variable.19 In each case, the union argument proved robust, actually increasing in absolute magnitude vis-à-vis the benchmark equation.
These could be factors such as skill, sectoral, or regional mismatches.7 Thus, an extension of Okun's Law would include measures of mismatches in the regression.
Lechner et al. (2005) provide results on training assigned by caseworkers misjudging skills and sectoral demands149.
"We have developed a number of sectoral strategies especially focusing on skills development to meet these challenges," Mr Zuma has said.
The latter is used for sectoral labour income disaggregation by skill level according to the National Occupational Classification (NOC) matrix15.
The analysis, based on the impact of sectoral tariffs on the wage skill premium, indicates that the level of tariffs has a positive and significant effect on the wages of unskilled labor, no significant effect on semi-skilled (high school graduates) labor, and a negative impact on the returns to higher education.
A second limitation is that skills training continues to be sectoral, failing to catch up with the move to genericism.
Sectoral training, combined with help on "soft skills" that employers value, like interviewing, is one of the best ways to train people to get a job, according to Lawrence Katz, a former labor economist in the Clinton administration who studies such programs.
