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Mass Layoffs and Unemployment Author info | Abstract | Publisher info | Download info | Related research | Statistics Andrew Caplin
John Leahy
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Mass layoffs give rise to groups of unemployed workers who possess similar characteristics and therefore may learn from one another's experience searching for a new job. Two factors lead them to be too selective in the job offers that they accept. The first is an information externality: searchers fail to take into account the value of their experience to others. The second is an incentive to free ride: each worker would like others to experiment and reveal information concerning productive jobs. Together these forces imply that in equilibrium the natural rate of unemployment is too high.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
4766.
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Date of creation: Jun 1994Date of revision:
Handle: RePEc:nbr:nberwo:4766Note: EFGContact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A. Phone: 617-868-3900 Email: Web page: http://www.nber.org More information through EDIRC
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Article Paper Caplin, A. & Leahy, J., 1993.
"Mass Layoffs and Unemployment ,"
Harvard Institute of Economic Research Working Papers
1666, Harvard - Institute of Economic Research.
Caplin, A. & Leahy, J., 1993.
"Mass Layoffs and Unemployment ,"
Discussion Papers
1993_18, Columbia University, Department of Economics.
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Caplin, A. & Leahy, J., 1993.
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Caplin, A. & Leahy, J., 1992.
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Discussion Papers
1992_18, Columbia University, Department of Economics.
Caplin, Andrew & Leahy, John, 1994.
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references Cited by : (explanations , 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.)
Fernando Lefort, 1997.
"Multiple Applications, Congestion Effects and Unemployment ,"
Working Papers Central Bank of Chile
13, Central Bank of Chile.
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