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Job Search in a Dynamic Environment--An Empirical Analysis

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  • Narendranathan, Wiji

Abstract

A dynamic job search model which allows us to distinguish various effects, such as 'offer' probability effects and leisure effects, on an individual's behavior is presented and estimated. We find that: (1) there is disutility from being unemployed, especially after the first three months of unemployment; (2) income receipts other than unemployment benefits and earnings have only a very small effect on the behavior; (3) the conditional probability of leaving unemployment shows no sign of decreasing with duration; (4) the elasticity of expected duration with respect to unemployment benefits in the first three months of the spell is 0.18 for teenage men, 0.13-0.14 for men aged 20-44, 0.08 for men aged 45-54, and 0.06 for men over 55, giving an overall average of 0.12; and (5) these elasticities are zero after the first three months of the spell. Copyright 1993 by Royal Economic Society.

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  • Narendranathan, Wiji, 1993. "Job Search in a Dynamic Environment--An Empirical Analysis," Oxford Economic Papers, Oxford University Press, vol. 45(1), pages 1-22, January.
    • Handle: RePEc:oup:oxecpp:v:45:y:1993:i:1:p:1-22
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    Cited by:

    1. Manning, Alan, 2001. "Labour supply, search and taxes," Journal of Public Economics, Elsevier, vol. 80(3), pages 409-434, June.
    2. repec:eee:labchp:v:3:y:1999:i:pc:p:3085-3139 is not listed on IDEAS
    3. Van den Berg, Gerard J., 2001. "Duration models: specification, identification and multiple durations," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 55, pages 3381-3460, Elsevier.
    4. Michael Rosholm & Michael Svarer, 2004. "Estimating the Threat Effect of Active Labour Market Programmes," CAM Working Papers 2004-14, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
    5. Knut Roed & Tao Zhang, 2003. "Does Unemployment Compensation Affect Unemployment Duration?," Economic Journal, Royal Economic Society, vol. 113(484), pages 190-206, January.
    6. Oberholzer-Gee, Felix, 2008. "Nonemployment stigma as rational herding: A field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 65(1), pages 30-40, January.
    7. M. J. Andrews & S. Bradley & D. Stott & R. Upward, 2008. "Successful Employer Search? An Empirical Analysis of Vacancy Duration Using Micro Data," Economica, London School of Economics and Political Science, vol. 75(299), pages 455-480, August.

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