An illfare approach to the measurement of unemployment: comment on Paul (1992)

Abstract

It is shown, that the unemployment index proposed by Paul (Applied Economics, 24, 1992) implies unwarranted results as to the disparity of unemployment duration. This is due to the usage of the concept of ‘interrupted spell length of the stock’ as the duration measure. Replacing this concept by the ‘complete spell length in a cohort’ allows to construct a consistent and superior index.