Ranking of Job Applicants, On-the-job Search and Persistent Unemployment
Abstract
We formulate an efficiency wage model with on-the-job search where wages depend on turnover and employers may use information on whether the searching worker is employed or unemployed as a hiring criterion. We show theoretically that ranking by employment status affects both the level and the persistence of unemployment and numerically that these effects are substantial. More prevalent ranking in Europe compared to the US - because of more rigid wage structures etc. - could potentially help to explain the high and persistent European unemployment.Download Info
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Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 2000:3.Length: 37 pages
Date of creation: 07 Mar 2000
Date of revision:
Publication status: Published in Labour Economics, 2005, pages 407-428.
Handle: RePEc:hhs:uunewp:2000_003
Contact details of provider:
Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Email:
Web page: http://www.nek.uu.se/
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Related research
Keywords: Efficiency wage; Turnover; On-thejob search; Persistence; Ranking; Unemployment; Unions;Other versions of this item:
- Eriksson, Stefan & Gottfries, Nils, 2005. "Ranking of job applicants, on-the-job search, and persistent unemployment," Labour Economics, Elsevier, vol. 12(3), pages 407-428, June.
- Eriksson, S. & Gottfries, N., 2000. "Ranking of Job Applicants, On-the-Job Search and Persistent Unemployment," Papers 2000:3, Uppsala - Working Paper Series.
- Eriksson, Stefan & Gottfries, Nils, 2000. "Ranking of job applicants, on-the-job search, and persistent unemployment," Working Paper Series 2000:8, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-03-27 (All new papers)
- NEP-DGE-2000-03-27 (Dynamic General Equilibrium)
- NEP-LAB-2000-03-27 (Labour Economics)
- NEP-LTV-2000-03-27 (Unemployment, Inequality & Poverty)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
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- repec:ese:iserwp:2013-02 is not listed on IDEAS
- Bruce Fallick & Charles A. Fleischman, 2004. "Employer-to-employer flows in the U.S. labor market: the complete picture of gross worker flows," Finance and Economics Discussion Series 2004-34, Board of Governors of the Federal Reserve System (U.S.).
- Simon Burgess & Helene Turon, 2005. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies – A Comment," Bristol Economics Discussion Papers 05/573, Department of Economics, University of Bristol, UK.
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