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Job Search in a Dynamic Environment--An Empirical Analysis

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Author Info
Narendranathan, Wiji

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Abstract

A dynamic job search model which allows us to distinguish various effects, such as 'offer' probability effects and leisure effects, on an individual's behavior is presented and estimated. We find that: (1) there is disutility from being unemployed, especially after the first three months of unemployment; (2) income receipts other than unemployment benefits and earnings have only a very small effect on the behavior; (3) the conditional probability of leaving unemployment shows no sign of decreasing with duration; (4) the elasticity of expected duration with respect to unemployment benefits in the first three months of the spell is 0.18 for teenage men, 0.13-0.14 for men aged 20-44, 0.08 for men aged 45-54, and 0.06 for men over 55, giving an overall average of 0.12; and (5) these elasticities are zero after the first three months of the spell. Copyright 1993 by Royal Economic Society.

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Publisher Info
Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 45 (1993)
Issue (Month): 1 (January)
Pages: 1-22
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Handle: RePEc:oup:oxecpp:v:45:y:1993:i:1:p:1-22

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  1. Michael Rosholm & Michael Svarer, 2004. "Estimating the Threat Effect of Active Labour Market Programmes," CAM Working Papers 2004-14, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics. [Downloadable!]
    Other versions:
  2. Van den Berg, Gerard J., 2000. "Duration Models: Specification, Identification, and Multiple Durations," MPRA Paper 9446, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  3. Roper, S., 2001. "Job Creation and Destruction in Northern Ireland 1973-93," Working Papers NIERC. 68, Economic Research Institute of Northern Ireland. [Downloadable!]
    Other versions:
  4. Knut Roed & Tao Zhang, 2003. "Does Unemployment Compensation Affect Unemployment Duration?," Economic Journal, Royal Economic Society, vol. 113(484), pages 190-206, January. [Downloadable!] (restricted)
  5. McVicar, D. & Podivinky, J., 2001. "Duration Dependence and Routes Out of Joblessness for Young People," Working Papers NIERC. 66, Economic Research Institute of Northern Ireland. [Downloadable!]
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