A Model of Competition between Unemployed and Employed Job Searchers: An Application to the Unemployment Outflow Rate in Britain
This paper proposes a model to explain the allocation of new jobs to workers. The central innovation is the analysis of the competition for jobs between employed and unemployed job searchers. It is argued that the endogeneity of the fraction of the employed engaging in search is a crucial determinant of the unemployment outflow rate. The model is applied to the unemployment outflow rate in Britain. The model fits the data well and encompasses its main rival. Copyright 1993 by Royal Economic Society.
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Volume (Year): 103 (1993)
Issue (Month): 420 (September)
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