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The Effects of Changes of the Job Offer Arrival Rate on the Duration of Unemployment

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  • van den Berg, Gerard J

Abstract

Generally, it is acknowledged that changing the job-offer arrival rate has two opposite effects on unemployment duration. For a basic job search model, sufficient conditions on the wage-offer distribution have been derived, ensuring that one of the effects dominates. However, these are not satisfied for the popular families of wage-offer distributions. Here the author shows that the conditions can be weakened at virtually no cost. The set of distributions satisfying the new conditions is considerably larger than the set previously established. In particular, it includes all wage-offer distribution families that are popular in structural empirical research. Copyright 1994 by University of Chicago Press.

Suggested Citation

  • van den Berg, Gerard J, 1994. "The Effects of Changes of the Job Offer Arrival Rate on the Duration of Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 478-498, July.
    • Handle: RePEc:ucp:jlabec:v:12:y:1994:i:3:p:478-98
    DOI: 10.1086/298353
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    References listed on IDEAS

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    1. Majumder, Amita & Chakravarty, Satya Ranjan, 1990. "Distribution of Personal Income: Development of a New Model and Its Application to U.S. Income Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 5(2), pages 189-196, April-Jun.
    2. Burdett, Kenneth & Ondrich, Jan I, 1985. "How Changes in Labor Demand Affect Unemployed Workers," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 1-10, January.
    3. Barron, John M, 1975. "Search in the Labor Market and the Duration of Unemployment: Some Empirical Evidence," American Economic Review, American Economic Association, vol. 65(5), pages 934-942, December.
    4. Esteban, Joan M, 1986. "Income-Share Elasticity and the Size Distribution of Income," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(2), pages 439-444, June.
    5. Stephen R. G. Jones, 1988. "The Relationship Between Unemployment Spells and Reservation Wages as a Test of Search Theory," The Quarterly Journal of Economics, Oxford University Press, vol. 103(4), pages 741-765.
    6. Vroman, S B, 1985. "No-Help-Wanted Signs and the Duration of Job Search," Economic Journal, Royal Economic Society, vol. 95(379), pages 767-773, September.
    7. Flinn, C. & Heckman, J., 1982. "New methods for analyzing structural models of labor force dynamics," Journal of Econometrics, Elsevier, vol. 18(1), pages 115-168, January.
    8. Narendranathan, Wiji & Nickell, Stephen, 1985. "Modelling the process of job search," Journal of Econometrics, Elsevier, vol. 28(1), pages 29-49, April.
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