Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States?
AbstractThis paper formulates and tests the hypothesis that the categories unemployed and out of the labor force are behaviorally distinct labor force states. Our empirical results indicate that they are. In the empirically relevant range the exit rate from unemployment to employment exceeds the exit rate from out of the labor force to employment. This evidence is shown to be consistent with a simple job search model of productive unemployment with log concave wage offer distributions. We prove that if unemployed workers receive job offers more frequently than workers out of the labor force, and if wage offer distributions are log concave, the exit rate from unemployment to employment exceeds the exit rate from out of the labor force to employment.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0979.
Date of creation: Sep 1982
Date of revision:
Publication status: published as Journal of Labor Economics, Vol. 1, no. 1 (January 1983): pp. 28-42.
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Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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Other versions of this item:
- Flinn, Christopher J & Heckman, James J, 1983. "Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States?," Journal of Labor Economics, University of Chicago Press, vol. 1(1), pages 28-42, January.
- NEP-ALL-2002-03-14 (All new papers)
- NEP-LAB-2002-03-14 (Labour Economics)
- NEP-LTV-2002-03-04 (Unemployment, Inequality & Poverty)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James J. Heckman & Christopher J. Flinn, 1982.
"New Methods for Analyzing Structural Models of Labor Force Dynamics,"
NBER Working Papers
0856, National Bureau of Economic Research, Inc.
- Flinn, C. & Heckman, J., 1982. "New methods for analyzing structural models of labor force dynamics," Journal of Econometrics, Elsevier, vol. 18(1), pages 115-168, January.
- Kim B. Clark & Lawrence H. Summers, 1978.
"The Dynamics of Youth Unemployment,"
NBER Working Papers
0274, National Bureau of Economic Research, Inc.
- Christopher J. Flinn & James J. Heckman, 1982. "Models for the Analysis of Labor Force Dynamics," NBER Working Papers 0857, National Bureau of Economic Research, Inc.
- Jovanovic, Boyan, 1979.
"Job Matching and the Theory of Turnover,"
Journal of Political Economy,
University of Chicago Press, vol. 87(5), pages 972-90, October.
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