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Reemployment Probabilities and Returns to Matching

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  • Petrongolo, Barbara

Abstract

The assumption of constant returns in the matching function, embodied in most bilateral search models, is crucial to ensure the uniqueness of the unemployment rate along a steady-state growth path. This article explores the empirical viability of this assumption by estimating individual reemployment probabilities on a sample of unemployment entrants. I apply hazard models to survey data on both completed and uncompleted unemployment durations. The hypothesis of constant returns to matching is not rejected, on the basis of the evidence that the job-finding hazard depends only on local labor market tightness and is independent of its size. Copyright 2001 by University of Chicago Press.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 19 (2001)
Issue (Month): 3 (July)
Pages: 716-41

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Handle: RePEc:ucp:jlabec:v:19:y:2001:i:3:p:716-41

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Cited by:
  1. Roger Bjørnstad, 2001. "Learned Helplessness, Discouraged Workers, and Multiple Unemployment Equilibria in a Search Model," Discussion Papers 303, Research Department of Statistics Norway.
  2. Di Addario, Sabrina, 2011. "Job search in thick markets," Journal of Urban Economics, Elsevier, vol. 69(3), pages 303-318, May.
  3. Sorm, Vit & Terrell, Katherine, 2000. "Sectoral Restructuring and Labor Mobility: A Comparative Look at the Czech Republic," IZA Discussion Papers 111, Institute for the Study of Labor (IZA).
  4. Frosch, Katharina, 2006. "Reemployment rates over the life course: Is there still hope after late career job loss?," Thuenen-Series of Applied Economic Theory 64, University of Rostock, Institute of Economics.
  5. Sabrina Di Addario, 2005. "Job Search in Thick Markets: Evidence from Italy," 2005 Meeting Papers 758, Society for Economic Dynamics.
  6. Sanna-Mari Ahtonen, 2004. "Matching across space: evidence from Finland," ERSA conference papers ersa04p205, European Regional Science Association.
  7. Dario Sciulli & Antonio Menezes & José Vieira, 2012. "Unemployment Duration and Disability: Evidence from Portugal," Journal of Labor Research, Springer, vol. 33(1), pages 21-48, March.
  8. Bruder, Jana & Frosch, Katharina, 2006. "Foreign nationality and age: A double drawback for reemployment in Germany?," Thuenen-Series of Applied Economic Theory 63, University of Rostock, Institute of Economics.
  9. Lorenzo Corsini, 2011. "On Wealth, Unemployment Benefits and Unemployment Duration: some Evidence from Italy," Discussion Papers 2011/119, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  10. Andrew Goodman-Bacon & Yukako Ono, 2007. "Who are temporary nurses?," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q I, pages 2-13.
  11. Régis Barnichon & Andrew Figura, 2010. "Labor market heterogeneity and the aggregate matching function," Economics Working Papers 1395, Department of Economics and Business, Universitat Pompeu Fabra, revised Sep 2013.
  12. Carolina Fugazza, 2012. "Employment Risk over the Life Cycle," Carlo Alberto Notebooks 280, Collegio Carlo Alberto.
  13. Bjornstad, Roger, 2006. "Learned helplessness, discouraged workers, and multiple unemployment equilibria," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(3), pages 458-475, June.
  14. Sunde, Uwe, 2002. "Unobserved Bilateral Search on the Labor Market: A Theory-Based Correction for a Common Flaw in Empirical Matching Studies," IZA Discussion Papers 520, Institute for the Study of Labor (IZA).

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