Playing Hard to Get: Theory and Evidence on Layoffs, Recalls and Unemployment
AbstractGiven the importance of recall to previous employer in the United States, I provide both theoretical and empirical analyses of an asymmetric information model with an endogenous layoff-rehire process. I show that taking into account the possibility of recalls has important implications for the study of post-displacement earnings and unemployment duration of laid-off workers in the US. I find that high-productivity laid-off workers may choose unemployment over a low paid job, even though they may not be recalled.
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Bibliographic InfoPaper provided by Boston University - Industry Studies Programme in its series Papers with number 0086.
Date of creation: Jan 1998
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Postal: Boston University, Industry Studies Program; Department of Economics, 270 Bay Road, Boston, Massachusetts 02215.
Web page: http://www.bu.edu/econ/isp/
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- Rodriguez-Planas, N., 1998. "Playing Hard to Get: Theory and Evidence on Layoffs, Recalls and Unemployment," Papers 86, Boston University - Industry Studies Programme.
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
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- Nakamura, Emi, 2008. "Layoffs and lemons over the business cycle," Economics Letters, Elsevier, vol. 99(1), pages 55-58, April.
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