Some Micro Evidence on Unemployment Persistence
Hysteresis and persistence models have become increasingly popular in explaining high European unemployment. In this paper, some microeconomic tests are performed to investigate especially the screening hypothesis. Two possible reasons that might explain duration dependent exit rates from unemployment are explored in detail: the influence of employment offices in allocating incoming job referrals and firms' recruitment strategies. In a bivariate framework, employers' and workers' decisions are simultaneously determined. Both models estimated for Austrian data show substantial discrimination against the long-term unemployed by employment office and employer, respectively. Copyright 1991 by Blackwell Publishing Ltd
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Volume (Year): 53 (1991)
Issue (Month): 1 (February)
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