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A Structural Dynamic Analysis of Job Turnover and the Costs Associated with Moving to Another Job

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van den Berg, Gerard J

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Abstract

This paper provides an empirical analysis of the labor market behavior of employed individuals using a structural on-the-job search model. The costs associated with moving to another job are allowed to be nonzero and may depend on the wage level. It is shown that, under certain conditions, the optimal strategy has the reservation wage property. The model is estimated using data on job durations and subjective responses concerning the search strategy. The results reveal some strong sources of inflexibility of the labor market. Copyright 1992 by Royal Economic Society.

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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 102 (1992)
Issue (Month): 414 (September)
Pages: 1116-33
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Handle: RePEc:ecj:econjl:v:102:y:1992:i:414:p:1116-33

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  1. Euwals, Rob & Ward-Warmedinger, Melanie, 2000. "What Matters Most: Teaching or Research? Empirical Evidence on the Remuneration of British Academics," CEPR Discussion Papers 2628, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  2. Euwals, Rob & Ward, Melanie, 2000. "The Remuneration of British Academics," IZA Discussion Papers 178, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Koning, Pierre & Berg, Gerard J. van den & Ridder, Geert, 1998. "Semi-nonparametric estimation of an equilibrium search model," Serie Research Memoranda 0003, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
    Other versions:
  4. Damm, Anna Piil & Rosholm, Michael, 2003. "Employment Effects of Dispersal Policies on Refugee Immigrants, Part I: Theory," IZA Discussion Papers 924, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Gary Engelhardt, 2001. "Nominal Loss Aversion, Housing Equity Constraints, and Household Mobility: Evidence from the United States," Center for Policy Research Working Papers 42, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
  6. Bloemen, Hans G., 2003. "Job search, search intensity and labour market transitions : an empirical analysis," Serie Research Memoranda 0026, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
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  7. Berg, G.J. & Lindeboom, M., 1994. "Attrition in panel data and the estimation of dynamic labor market models," Serie Research Memoranda 0022, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
  8. Jan Rouwendal & Arno van der Vlist, 2002. "A Dynamic Model of Commutes," Tinbergen Institute Discussion Papers 02-026/3, Tinbergen Institute. [Downloadable!]
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  9. Rob Euwals & Melanie Ward, . "The Remuneration of British Academics," Discussion Papers in Public Sector Economics 00/7, Department of Economics, University of Leicester. [Downloadable!]
  10. Gerard J. van den Berg & Aico van Vuuren, 2002. "The Effect of Search Frictions on Wages," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 C1-2, International Conferences on Panel Data. [Downloadable!]
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  11. Michiel van Leuvensteijn & Pierre Koning, 2004. "The Effect of Home-ownership on Labor Mobility in The Netherlands," Working Papers 04-01, Utrecht School of Economics. [Downloadable!]
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  12. Mette Deding & Trine Filges & Jos Van Ommeren, 2005. "Spatial job and residential mobility - the case of two-earner households," ERSA conference papers ersa05p256, European Regional Science Association. [Downloadable!]
  13. Aico van Vuuren & Michiel van Leuvensteijn, 2007. "The impact of homeownership on unemployment in the Netherlands," CPB Discussion Papers 86, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  14. Christian Dustmann & Teresa casey, 2005. "Intergenerational transmission of language capital and economic outcomes," CReAM Discussion Paper Series 0506, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
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  15. Lindgren, Urban & Westerlund, Olle, 2003. "Labour market programmes and geographical mobility: migration and commuting among programme participants and openly unemployed," Working Paper Series 2003:6, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  16. Aico Van Vuuren & Gerard J. Van Den Berg & Geert Ridder, 2000. "Measuring the equilibrium effects of unemployment benefits dispersion," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(6), pages 547-574. [Downloadable!]
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  17. Piil Damm, Anna & Rosholm, Michael, 2005. "Employment Effects of Dispersal Policies on Refugee Immigrants: Theory," Working Papers 05-1, University of Aarhus, Aarhus School of Business, Department of Economics. [Downloadable!]
  18. Pavlopoulos, Dimitris & Fouarge, Didier & Muffels, Ruud & Vermunt, Jeroen K., 2007. "Who benefits from a job change: The dwarfs or the giants?," IRISS Working Paper Series 2007-16, IRISS at CEPS/INSTEAD. [Downloadable!]
  19. Gerard J. van den Berg, 1998. "Empirical Inference with Equilibrium Search Models of the Labor Market," Tinbergen Institute Discussion Papers 98-089/3, Tinbergen Institute. [Downloadable!]
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  20. Anna Piil Damm & Michael Rosholm, 2005. "Employment Effects of Spatial Dispersal of Refugees," CAM Working Papers 2005-03, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics. [Downloadable!]
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  21. Doriana Ruffino, 2007. "Resuscitating The Businessman Risk: A Rationale For Familiarity-Based Portfolios," Boston University - Department of Economics - Working Papers Series WP2007-037, Boston University - Department of Economics. [Downloadable!]
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