Search Behaviour, Transitions to Nonparticipation and the Duration of Unemployment
Using longitudinal micro data on unemployed individuals for 1983-85, a structural job search model is estimated. The model allows for transitions from unemployment to nonparticipation. An extended version of the model deals with the influence of on-the-job search and prospective wage increases on search behavior of the unemployed. The empirical results show that the probability of accepting a job offer is almost one for most unemployed individuals. A large portion of unemployment spells ends in a transition out of the labor force. The effects of changes in benefits on duration appear to be extremely small. Copyright 1990 by Royal Economic Society.
Volume (Year): 100 (1990)
Issue (Month): 402 (September)
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