We consider the problem of measuring transition probabilities across employment, unemployment and inactivity when …

global financial markets enables capital owners to invest abroad, thereby fostering unemployment at the extensive industry … margin. Whether a country benefits from FDI in terms of unemployment depends on the respective country's net-FDI, measured as … the difference between in- and outward FDI. The derived FDI and unemployment nexus is tested employing macroeconomic data …