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Labour market signalling and unemployment duration: An empirical analysis using employer–employee data

  • Frederiksen, Anders
  • Ibsen, Rikke
  • Rosholm, Michael
  • Westergaard-Nielsen, Niels

We test the signalling hypothesis using detailed flow-based employer–employee data from Denmark. Our main findings are: the signalling value is proportional to the proportion of employees dismissed from the workplace and the signal is uniform across occupation groups.

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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 118 (2013)
Issue (Month): 1 ()
Pages: 84-86

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Handle: RePEc:eee:ecolet:v:118:y:2013:i:1:p:84-86
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Robert Gibbons & Lawrence Katz, 1989. "Layoffs and Lemons," Working Papers 629, Princeton University, Department of Economics, Industrial Relations Section..
  2. Narendranathan, W & Stewart, Mark B, 1993. "How Does the Benefit Effect Vary as Unemployment Spells Lengthen?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(4), pages 361-81, Oct.-Dec..
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  4. Dale T. Mortensen & Christopher A. Pissarides, 1999. "Job Reallocation, Employment Fluctuations and Unemployment," CEP Discussion Papers dp0421, Centre for Economic Performance, LSE.
  5. Bruce D. Meyer, 1988. "Unemployment Insurance And Unemployment Spells," NBER Working Papers 2546, National Bureau of Economic Research, Inc.
  6. Heckman, James J & Borjas, George J, 1980. "Does Unemployment Cause Future Unemployment? Definitions, Questions and Answers from a Continuous Time Model of Heterogeneity and State Dependence," Economica, London School of Economics and Political Science, vol. 47(187), pages 247-83, August.
  7. Frederiksen, Anders & Westergaard-Nielsen, Niels, 2007. "Where did they go? Modelling transitions out of jobs," Labour Economics, Elsevier, vol. 14(5), pages 811-828, October.
  8. Frederiksen, Anders & Takáts, Elöd, 2006. "Layoffs as Part of an Optimal Incentive Mix: Theory and Evidence," IZA Discussion Papers 2447, Institute for the Study of Labor (IZA).
  9. James J. Heckman, 1981. "Heterogeneity and State Dependence," NBER Chapters, in: Studies in Labor Markets, pages 91-140 National Bureau of Economic Research, Inc.
  10. Denise J. Doiron, 1995. "Lay-Offs as Signals: The Canadian Evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4a), pages 899-913, November.
  11. Card, David & Sullivan, Daniel G, 1988. "Measuring the Effect of Subsidized Training Programs on Movements in and out of Employment," Econometrica, Econometric Society, vol. 56(3), pages 497-530, May.
  12. Neal, Derek, 1995. "Industry-Specific Human Capital: Evidence from Displaced Workers," Journal of Labor Economics, University of Chicago Press, vol. 13(4), pages 653-77, October.
  13. Farber, Henry S, 1994. "The Analysis of Interfirm Worker Mobility," Journal of Labor Economics, University of Chicago Press, vol. 12(4), pages 554-93, October.
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