We consider the search behaviour of an infinite lifetime worker whose expected matching gains are assumed to be decreasing over the spell of unemployment. The search effort is linked positively to future earnings and negatively to the worker's reservation wage. We show that this may give rise to non monotonous hazard rates.
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Paper provided by Universite Aix-Marseille III in its series G.R.E.Q.A.M. with number
00a07.
Length: 8 pages Date of creation: 2000 Date of revision: Handle: RePEc:fth:aixmeq:00a07
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