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Can skill decay increase search effort?

  • Charlot, Olivier
  • Decreuse, Bruno

We consider the search behaviour of an infinite lifetime worker whose expected matching gains are assumed to be decreasing over the spell of unemployment. The search effort is linked positively to future earnings and negatively to the worker's reservation wage. We show that this may give rise to non monotonous hazard rates.

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File URL: http://www.sciencedirect.com/science/article/B6V84-42VV88K-B/2/831bf50397b789641239073604964a05
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 71 (2001)
Issue (Month): 3 (June)
Pages: 359-362

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Handle: RePEc:eee:ecolet:v:71:y:2001:i:3:p:359-362
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. van den Berg, G. & van Ours, J.C., 1996. "Unemployment dynamics and duration dependence," Other publications TiSEM 4374742f-8d86-458d-9ab3-6, Tilburg University, School of Economics and Management.
  2. Coles, Melvyn & Masters, Adrian, 2000. "Retraining and long-term unemployment in a model of unlearning by not doing," European Economic Review, Elsevier, vol. 44(9), pages 1801-1822, October.
  3. Portugal, Pedro & Addison, John T., 2000. "Short- and long-term unemployment," Economics Letters, Elsevier, vol. 66(1), pages 107-112, January.
  4. van Ours, J.C. & van den Berg, G.J., 1994. "Unemployment Dynamics and Duration Dependence in France, the Netherlands and the UK," Other publications TiSEM 941b66a3-a3a7-4182-9d31-e, Tilburg University, School of Economics and Management.
  5. van den Berg, Gerard J & van Ours, Jan C, 1994. "Unemployment Dynamics and Duration Dependence in France, the Netherlands and the United Kingdom," Economic Journal, Royal Economic Society, vol. 104(423), pages 432-43, March.
  6. Olivier Jean Blanchard & Peter Diamond, 1990. "Ranking, Unemployment Duration, and Wages," NBER Working Papers 3387, National Bureau of Economic Research, Inc.
  7. Berg, G.J. & Ours, J.C., 1993. "Unemployment dynamics and duration dependence," Serie Research Memoranda 0022, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  8. repec:ner:tilbur:urn:nbn:nl:ui:12-86874 is not listed on IDEAS
  9. Pissarides, Christopher A, 1992. "Loss of Skill during Unemployment and the Persistence of Employment Shocks," The Quarterly Journal of Economics, MIT Press, vol. 107(4), pages 1371-91, November.
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