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 re-employed either by being recalled to their previous employers or by finding new jobs. Workers' chances for recall should influence their job search strategies, so the rates of exit from unemployment by these two routes should be directly related. We solve a job search model to establish, in theory, a negative relationship between the recall and new job hazard rates. We look for evidence in the PSID by estimating a semi-parametric competing risks model with explicitly related hazards. We find only a small negative behavioral relationship between recall and new job hazard rates.
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Bibliographic InfoPaper provided by Board of Governors of the Federal Reserve System (U.S.) in its series Finance and Economics Discussion Series with number 2003-22.
Date of creation: 2003
Date of revision:
Other versions of this item:
- Bruce Fallick & Keunkwan Ryu, 2007. "The Recall and New Job Search of Laid-Off Workers: A Bivariate Proportional Hazard Model with Unobserved Heterogeneity," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 313-323, May.
- 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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