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The Diverging Effects of the Business Cycle on the Expected Duration of Job-Search

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  • Teulings, Coen N

Abstract

Where rigid wages prevent labor-market clearing, employers become more choosy and job-seekers accept lower-ranked jobs in cyclical downturns. Thus, the duration of job-search of highly-qualified job-seekers should be less cyclically sensitive than for low-skilled job-seekers and, controlling for personal characteristics, job-seekers will find lower-ranked jobs during the downturn. These predictions are tested for the Netherlands, 1982-85. Individual transition rates from job-search to employment are estimated. Employment is classified by occupation to distinguish job ranks. Transition rates by occupation are estimated. Copyright 1993 by Royal Economic Society.

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  • Teulings, Coen N, 1993. "The Diverging Effects of the Business Cycle on the Expected Duration of Job-Search," Oxford Economic Papers, Oxford University Press, vol. 45(3), pages 482-500, July.
    • Handle: RePEc:oup:oxecpp:v:45:y:1993:i:3:p:482-500
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    Cited by:

    1. Ammermueller, Andreas & Kuckulenz, Anja & Zwick, Thomas, 2009. "Aggregate unemployment decreases individual returns to education," Economics of Education Review, Elsevier, vol. 28(2), pages 217-226, April.
    2. Lederman, Daniel & Rojas, Diego, 2014. "Export shocks and the volatility of returns to schooling : evidence from twelve Latin American economies," Policy Research Working Paper Series 7144, The World Bank.
    3. Amparo Nagore García & Arthur van Soest, 2017. "New job matches and their stability before and during the crisis," International Journal of Manpower, Emerald Group Publishing Limited, vol. 38(7), pages 975-995, October.
    4. Paul J. Devereux, 2004. "Cyclical Quality Adjustment in the Labor Market," Southern Economic Journal, John Wiley & Sons, vol. 70(3), pages 600-615, January.
    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. D. Lederman & W.F. Maloney & J. Messina, 2011. "The Fall of Wage Flexibility," World Bank Publications - Reports 23575, The World Bank Group.
    7. Martina Bisello & Vincenzo Maccarrone & Enrique Fernández-Macías, 2022. "Occupational mobility, employment transitions and job quality in Europe: The impact of the Great Recession," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 43(2), pages 585-611, May.

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