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The Relation Between Wealth and Labour Market Transitions: An Empirical Study for the Netherlands

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  • Bloemen, H.

Abstract

We study the relationship between wealth and labour market transitions. A lifecycle model, in which individuals are faced by uncertainty about the availability of jobs, serves as a basis for a reduced-form specification for the probabilities of labour market transitions, which depend on wealth according to the model. Theory implies a negative effect of wealth on the probability of becoming or staying employed. This implication is tested for in a reduced-from model of labour market transitions, in which we allow for random effects, initial conditions, and measurement error in wealth. Elasticities of transitions probabilities with respect to wealth are presented. Copyright © 2002 John Wiley & Sons, Ltd.
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  • Bloemen, H., 1995. "The Relation Between Wealth and Labour Market Transitions: An Empirical Study for the Netherlands," Papers 9599, Tilburg - Center for Economic Research.
    • Handle: RePEc:fth:tilbur:9599
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    1. Bloemen, Hans G. & Stancanelli, Elena G.F., 2001. "Financial wealth, consumption smoothing, and income shocks due to job loss," Serie Research Memoranda 0036, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    2. Nathalie Havet & Xavier Joutard & Alexis Pénot, 2019. "Les pratiques d’activité réduite et leurs impacts sur les trajectoires professionnelles : Une revue de la littérature: Une revue de la littérature," Sciences Po publications info:hdl:2441/1v5orglviq8, Sciences Po.
    3. Lorenzo Corsini, 2012. "Unemployment Insurance Schemes, Liquidity Constraints and Re-employment: A Three Country Comparison," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(2), pages 321-340, June.
    4. Nathalie Havet & Xavier Joutard & Alexis Penot, 2019. "Les pratiques d’activité réduite et leurs impacts sur les trajectoires professionnelles : une revue de la littérature," Revue d'économie politique, Dalloz, vol. 129(1), pages 11-47.
    5. Bloemen, Hans G & Stancanelli, Elena G F, 2001. "Individual Wealth, Reservation Wages, and Transitions into Employment," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 400-439, April.
    6. Hans G. Bloemen, 2016. "Private wealth and job exit at older age: a random effects model," Empirical Economics, Springer, vol. 51(2), pages 763-807, September.
    7. Ben Lodewijks, 2011. "Financial Constraints and Job Mobility in Australia," The Economic Record, The Economic Society of Australia, vol. 87(276), pages 61-75, March.
    8. Thomas Huizen & Janneke Plantenga, 2014. "Job Search Behaviour and Time Preferences: Testing Exponential Versus Hyperbolic Discounting," De Economist, Springer, vol. 162(3), pages 223-245, September.
    9. Cathy Honge Gong & Xiaojun He, 2019. "Factors Predicting Voluntary and Involuntary Workforce Transitions at Mature Ages: Evidence from HILDA in Australia," IJERPH, MDPI, vol. 16(19), pages 1-20, October.
    10. Martin Browning & Thomas F. Crossley & Eric F. Smith, 2007. "Asset Accumulation and Short Term Employment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(3), pages 400-423, July.
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    12. Gibson, John & Johnson, David, 2017. "Why Bother? Understanding the Impact of Financial Obligations on Wage Selectivity," MPRA Paper 78244, University Library of Munich, Germany.
    13. 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.
    14. Florent Fremigacci & Antoine Terracol, 2013. "Subsidized temporary jobs: lock-in and stepping stone effects," Applied Economics, Taylor & Francis Journals, vol. 45(33), pages 4719-4732, November.
    15. Tricia Gladden & Michelle Alexopoulos, 2004. "The Effects of Wealth, and Unemployment Benefits on Search Behavior and Labor Market Transitions," Econometric Society 2004 North American Summer Meetings 517, Econometric Society.
    16. van Huizen, Thomas, 2014. "More wealth, shorter hours? Evidence from the Netherlands," Economics Letters, Elsevier, vol. 125(2), pages 323-326.
    17. Massimo Baldini & Costanza Torricelli & Maria Cesira Urzì Brancati, 2018. "Family ties: Labor supply responses to cope with a household employment shock," Review of Economics of the Household, Springer, vol. 16(3), pages 809-832, September.
    18. Bloemen, Hans, 2006. "The Impact of Wealth on Job Exit Rates of Elderly Workers," IZA Discussion Papers 2247, Institute of Labor Economics (IZA).
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    23. Stefan Jestl & Michael Landesmann & Sebastian Leitner & Sandra M. Leitner & Isilda Mara & Maryna Tverdostup, 2023. "wiiw Studies on the Integration of Middle Eastern Refugees in Austria, Based on FIMAS Surveys and Register-based Labour Market Career Data," wiiw Policy Notes 74, The Vienna Institute for International Economic Studies, wiiw.
    24. Auray, Stéphane & Lepage-Saucier, Nicolas, 2021. "Stepping-stone effect of atypical jobs: Could the least employable reap the most benefits?," Labour Economics, Elsevier, vol. 68(C).

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    Keywords

    WEALTH; LABOUR MARKET;

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