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Savings and labour market transitions

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  • Richard Blundell

    ()
    (Institute for Fiscal Studies and University College London)

  • Thierry Magnac
  • Costas Meghir

    (Institute for Fiscal Studies and Yale University)

Abstract

A model is developed that allows for a layoff rate and a job arrival rate in the intertemporal choice of consumption and labor market state. The identification of such a model is established without recourse to dynamic programming solutions and the minimum data requirements for estimation are derived. Unobserved heterogeneity is included in the model specification but state dependence is only allowed through the layoff and arrival rates which are restricted to be functions of observable weakly exogenous variables.

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Bibliographic Info

Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W96/05.

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Date of creation: Jan 1996
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Handle: RePEc:ifs:ifsewp:96/05

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Cited by:
  1. repec:spo:wpecon:info:hdl:2441/9704 is not listed on IDEAS
  2. Richard Blundell & Thomas MaCurdy, 1998. "Labour supply: a review of alternative approaches," IFS Working Papers W98/18, Institute for Fiscal Studies.
  3. Hans G. Bloemen, 2007. "The Impact of Wealth on Job Exit Rates of Elderly Workers," Tinbergen Institute Discussion Papers 07-002/3, Tinbergen Institute.
  4. Harounan Kazianga & Christopher Udry, 2004. "Consumption Smoothing? Livestock, Insurance and Drought in Rural Burkina Faso," Working Papers 898, Economic Growth Center, Yale University.
  5. Bloemen, Hans, 2008. "Private Wealth and Job Exit at Older Age: A Random Effects Model," IZA Discussion Papers 3386, Institute for the Study of Labor (IZA).
  6. Liu, Haiyong & Mroz, Thomas & Adair, Linda, 2009. "Parental compensatory behaviors and early child health outcomes in Cebu, Philippines," Journal of Development Economics, Elsevier, vol. 90(2), pages 209-230, November.
  7. repec:dgr:uvatin:2007002 is not listed on IDEAS
  8. Bloemen, H., 1995. "The Relation Between Wealth and Labour Market Transitions: An Empirical Study for the Netherlands," Papers 9599, Tilburg - Center for Economic Research.
  9. Hans Bloemen & Elena Stancanelli, 2001. "Individual Wealth, Reservation Wages, and Transitions into Employment," Sciences Po publications info:hdl:2441/9704, Sciences Po.
  10. Hans G. Bloemen & Elena G. F. Stancanelli, 2003. "Financial Wealth, Consumption Smoothing, and Income Shocks due to Job Loss," Documents de Travail de l'OFCE 2003-09, Observatoire Francais des Conjonctures Economiques (OFCE).
  11. repec:dgr:uvatin:2008025 is not listed on IDEAS
  12. Kalwij, A.S., 1998. "Household Wealth, Female Labor Force Participation and Fertility Decisions," Discussion Paper 1998-89, Tilburg University, Center for Economic Research.

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