IDEAS home Printed from
   My bibliography  Save this article

A Model of Layoff, Search and Job Choice and Its Estimation


  • Khandker, Rezaul K


A labor-market model of search and transitions is analyzed where certain jobs carry layoff prospects and others do not. The dynamic value functions are solved for reservation wages for searchers with a choice between these jobs. For the laid-off worker, the wage at the prior job emerges as an important determinant of the optimal search strategy. Similarly, prospect of layoff is an important consideration for permanently separated workers during search. Conditioning on the nonparametric estimates of the reservation wages, the model is estimated using data from the Employment Opportunities Pilot Project survey. Copyright 1992 by MIT Press.

Suggested Citation

  • Khandker, Rezaul K, 1992. "A Model of Layoff, Search and Job Choice and Its Estimation," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 269-275, May.
  • Handle: RePEc:tpr:restat:v:74:y:1992:i:2:p:269-75

    Download full text from publisher

    File URL:
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Lillard, Lee & Smith, James P & Welch, Finis, 1986. "What Do We Really Know about Wages? The Importance of Nonreporting and Census Imputation," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 489-506, June.
    2. Richard Butler & James J. Heckman, 1977. "The Government's Impact on the Labor Market Status of Black Americans: A Critical Review," NBER Working Papers 0183, National Bureau of Economic Research, Inc.
    3. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    4. James P. Smith, 2004. "The Convergence to Racial Equality in Women's Wages," Labor and Demography 0402011, EconWPA.
    5. Charles F. Manski, 1989. "Anatomy of the Selection Problem," Journal of Human Resources, University of Wisconsin Press, vol. 24(3), pages 343-360.
    6. O'Neill, June, 1990. "The Role of Human Capital in Earnings Differences between Black and White Men," Journal of Economic Perspectives, American Economic Association, vol. 4(4), pages 25-45, Fall.
    7. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-579, November.
    8. William Darity, 1980. "Illusions of black economic progress," The Review of Black Political Economy, Springer;National Economic Association, vol. 10(2), pages 153-168, December.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:74:y:1992:i:2:p:269-75. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kristin Waites). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.