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The relation between wealth and labour market transitions: an empirical study for the Netherlands

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  • Hans G. Bloemen

    (Free University Amsterdam, The Netherlands)

Abstract

We study the relationship between wealth and labour market transitions. A lifecycle model, in which individuals are faced by uncertainty about the availability of jobs, serves as a basis for a reduced-form specification for the probabilities of labour market transitions, which depend on wealth according to the model. Theory implies a negative effect of wealth on the probability of becoming or staying employed. This implication is tested for in a reduced-from model of labour market transitions, in which we allow for random effects, initial conditions, and measurement error in wealth. Elasticities of transitions probabilities with respect to wealth are presented. Copyright © 2002 John Wiley & Sons, Ltd.

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  • Hans G. Bloemen, 2002. "The relation between wealth and labour market transitions: an empirical study for the Netherlands," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 17(3), pages 249-268.
  • Handle: RePEc:jae:japmet:v:17:y:2002:i:3:p:249-268
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    Cited by:

    1. Bloemen, Hans G. & Stancanelli, Elena G.F., 2001. "Financial wealth, consumption smoothing, and income shocks due to job loss," Serie Research Memoranda 0036, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    2. Lorenzo Corsini, 2012. "Unemployment Insurance Schemes, Liquidity Constraints and Re-employment: A Three Country Comparison," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, pages 321-340.
    3. Bloemen, Hans G & Stancanelli, Elena G F, 2001. "Individual Wealth, Reservation Wages, and Transitions into Employment," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 400-439, April.
    4. Hans G. Bloemen, 2016. "Private wealth and job exit at older age: a random effects model," Empirical Economics, Springer, pages 763-807.
    5. Thomas Huizen & Janneke Plantenga, 2014. "Job Search Behaviour and Time Preferences: Testing Exponential Versus Hyperbolic Discounting," De Economist, Springer, pages 223-245.
    6. Paul Contoyannis & Andrew M. Jones & Roberto Leon-Gonzalez, 2004. "Using simulation-based inference with panel data in health economics," Health Economics, John Wiley & Sons, Ltd., vol. 13(2), pages 101-122.
    7. Gibson, John & Johnson, David, 2017. "Why Bother? Understanding the Impact of Financial Obligations on Wage Selectivity," MPRA Paper 78244, University Library of Munich, Germany.
    8. Fanti, Luciano & Gori, Luca, 2011. "The dynamics of a Bertrand duopoly with differentiated products and bounded rational firms revisited," MPRA Paper 33268, University Library of Munich, Germany.
    9. Martin Browning & Thomas F. Crossley & Eric F. Smith, 2007. "Asset Accumulation and Short Term Employment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(3), pages 400-423, July.
    10. Michel GUILLARD & Rym ALOUI, "undated". "A Simple "Public Debt-Deflation" Theory: Leeper revisited," EcoMod2010 259600067, EcoMod.
    11. Tricia Gladden & Michelle Alexopoulos, 2004. "The Effects of Wealth, and Unemployment Benefits on Search Behavior and Labor Market Transitions," Econometric Society 2004 North American Summer Meetings 517, Econometric Society.
    12. van Huizen, Thomas, 2014. "More wealth, shorter hours? Evidence from the Netherlands," Economics Letters, Elsevier, vol. 125(2), pages 323-326.
    13. Maarten C.W. Janssen & Vladimir A. Karamychev, 2010. "Do auctions select efficient firms?," Economic Journal, Royal Economic Society, vol. 120(549), pages 1319-1344, December.
    14. Florent Fremigacci & Antoine Terracol, 2013. "Subsidized temporary jobs: lock-in and stepping stone effects," Applied Economics, Taylor & Francis Journals, vol. 45(33), pages 4719-4732, November.
    15. Bloemen, Hans, 2006. "The Impact of Wealth on Job Exit Rates of Elderly Workers," IZA Discussion Papers 2247, Institute for the Study of Labor (IZA).

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