Labor transition rates in argentina: An application of the search model based on microdata

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DOI:

https://doi.org/10.52292/j.estudecon.2026.5362

Keywords:

Labor market flows, job finding rate, job separation rate, unemployment dynamics, Argentina

Abstract

This paper estimates job finding (f) and job separation (s) rates in Argentina and its regions using microdata from the Permanent Household Survey and the theoretical frameworks of Shimer (2012) and Elsby et al. (2013). The results indicate low values compared to other economies, particularly for f, which reaches a maximum of 15% in the NOA region, and for s, which barely exceeds 1% across all regions. These figures reveal significant rigidity and limited labor market mobility. The decomposition of the unemployment rate shows that changes in f mainly drive fluctuations in Greater Buenos Aires and the Pampeana region, whereas variations in s play a more prominent role in northern Argentina and Cuyo. Informal employment represents a substantial share of aggregate rates. Specifically, f for informal workers is positively correlated with the regional level of informality, which suggests that this sector functions as a buffer in response to losses in formal employment. In contrast, structural factors appear to determine access to formal employment. This extension of the theoretical model, which estimates the contribution of informality to labor market transition rates, also creates the possibility of analyzing future socioeconomic disaggregations within these rates.

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References

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Published

2026-07-03

How to Cite

Dominguez Paredes, F. A. . (2026). Labor transition rates in argentina: An application of the search model based on microdata. Estudios económicos, 43(87), 38–66. https://doi.org/10.52292/j.estudecon.2026.5362

Issue

Vol. 43 No. 87 (2026): Estudios económicos

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Articles

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