’ transition rates from unemployment to employment.Based on Norwegian register data from the 1989-2002 period, we show that this … indicator,in contrast to the aggregate rate of unemployment, correlates well with an expost-calculated GDP-based business cycle … unemployment rate, both at an aggregate and a disaggregate level, and hence improve policy makers ability to assess current labour …

workers’ outside options. We document the negative selection into self-employment when workers enter from unemployment, and … contract out of unemployment. These facts call for a revision of active labor market policies in place …

in their unemployment rate and not a decline in labour force participation rate. Policymakers should take account of …