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The Duration of Youth Unemployment in West Germany: Some Theoretical Considerations

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  • Wolfgang Franz

Abstract

This paper presents a theoretical model dealing with the duration of youth unemployment in West Germany. Duration can be expressed in terms of the underlying hazard function. After a brief discussion of a reasonable shape of the hazard function a distinction is made with respect to the probabilities of receiving a job offer and accepting it. Determinants of the latter decision are developed using a unified model of consumption, leisure, and job search. Uncertainty and some restrictions such as standard work time and entitlement to unemployment compensation are taken into account. The probability of receiving a job offer depends, among other factors, on the screening process undertaken by the firms .

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0397.

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Date of creation: Oct 1979
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Handle: RePEc:nbr:nberwo:0397

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  1. Amemiya, Takeshi, 1973. "Regression Analysis when the Dependent Variable is Truncated Normal," Econometrica, Econometric Society, Econometric Society, vol. 41(6), pages 997-1016, November.
  2. Seater, John J, 1979. "Job Search and Vacancy Contacts," American Economic Review, American Economic Association, American Economic Association, vol. 69(3), pages 411-19, June.
  3. Stephen W. Salant, 1974. "Search theory and duration data: a theory of sorts," Special Studies Papers, Board of Governors of the Federal Reserve System (U.S.) 42, Board of Governors of the Federal Reserve System (U.S.).
  4. Borjas, George J & Goldberg, Matthew S, 1978. "Biased Screening and Discrimination in the Labor Market," American Economic Review, American Economic Association, American Economic Association, vol. 68(5), pages 918-22, December.
  5. George A. Akerlof & Brian G. M. Main, 1978. "Unemployment spells and unemployment experience," Special Studies Papers, Board of Governors of the Federal Reserve System (U.S.) 123, Board of Governors of the Federal Reserve System (U.S.).
  6. Herbert Grubel & Dennis Maki, 1976. "The effects of unemployment benefits on U. S. Unemployment rates," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 112(2), pages 274-299, June.
  7. Richard B. Freeman, 1979. "Why is There A Youth Labor Market Problem?," NBER Working Papers 0365, National Bureau of Economic Research, Inc.
  8. Lancaster, Tony, 1979. "Econometric Methods for the Duration of Unemployment," Econometrica, Econometric Society, Econometric Society, vol. 47(4), pages 939-56, July.
  9. Seater, John J., 1977. "A unified model of consumption, labor supply, and job search," Journal of Economic Theory, Elsevier, Elsevier, vol. 14(2), pages 349-372, April.
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Cited by:
  1. Wolfgang Franz, 1980. "The Reservation Wage of Unemployed Persons in the Federal Republic of Germany: Theory and Empirical Tests," NBER Working Papers 0578, National Bureau of Economic Research, Inc.

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