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A Search Model with Job Changing Costs: 'Eurosclerosis' and Unemployment

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  • Burgess, Simon M

Abstract

The paper proposes a framework for studying the effects of job-leaving costs and job-acceptance costs on labor-market transitions. These are incorporated into a general model of on-the-job search with null offers, quitting, and layoffs. It is shown that both types of costs raise the duration of unemployment and the inflow into unemployment as well as reduce the job-to-job mobility. The paper generalizes previous results by looking at a wider class of search models and considering all the individual's transition possibilities. Copyright 1992 by Royal Economic Society.

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  • Burgess, Simon M, 1992. "A Search Model with Job Changing Costs: 'Eurosclerosis' and Unemployment," Oxford Economic Papers, Oxford University Press, vol. 44(1), pages 75-88, January.
  • Handle: RePEc:oup:oxecpp:v:44:y:1992:i:1:p:75-88
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    Cited by:

    1. Burgess, Simon & Turon, Hélène, 2000. "Unemployment Dynamics, Duration and Equilibrium: Evidence from Britain," CEPR Discussion Papers 2490, C.E.P.R. Discussion Papers.
    2. Andrés J. Marchante & Bienvenido Ortega & Ricardo Pagán, 2005. "Determinants of Skills Shortages and Hard-to-Fill Vacancies in the Hospitality Sector," ERSA conference papers ersa05p21, European Regional Science Association.
    3. Gicheva, Dora, 2012. "Worker mobility, employer-provided general training, and the choice of graduate education," Labour Economics, Elsevier, vol. 19(2), pages 232-240.
    4. Molho, Ian, 2001. "Spatial Search, Migration and Regional Unemployment," Economica, London School of Economics and Political Science, vol. 68(270), pages 269-283, May.
    5. Carole Brunet & Nathalie Havet & Jean-Yves Lesueur, 2010. "Propriété immobilière et trajectoires salariales : Quelles leçons tirer de la comparaison France – Etats – Unis ?," Working Papers 1011, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    6. Julie Hotchkiss, 1999. "The effect of transitional employment on search duration: A selectivity approach," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 27(1), pages 38-52, March.

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