The Recall and New Job Search of Laid-Off Workers: A Bivariate Proportional Hazard Model with Unobserved Heterogeneity
AbstractWorkers who lose their jobs can become reemployed either by being recalled to their previous employers or by finding new jobs. Workers' chances for recall should depress their job search intensity, so the rates of exit from unemployment by these two routes should be negatively related. We look for evidence in the PSID data by estimating a semiparametric competing risks model with explicitly related hazards. Our estimates reveal a statistically precise but small negative effect of recall probabilities on the rate of new job finding. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
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Bibliographic InfoArticle provided by MIT Press in its journal The Review of Economics and Statistics.
Volume (Year): 89 (2007)
Issue (Month): 2 (May)
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Other versions of this item:
- Bruce Fallick & Keunkwan Ryu, 2003. "The recall and new job search of laid-off workers: a bivariate proportional hazard model with unobserved heterogeneity," Finance and Economics Discussion Series 2003-22, Board of Governors of the Federal Reserve System (U.S.).
- Bruce Fallick & Keunkwan Ryu, 2003. "The Recall and New Job Search of Laid-off Workers: A Bivariate Proportional Hazard Model with Unobserved Heterogeneity," ISER Discussion Paper 0592, Institute of Social and Economic Research, Osaka University.
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